CHICAGO, June 29,
2023 /PRNewswire/ -- CME Group, the world's
leading derivatives marketplace, today announced plans to launch
Ether/Bitcoin Ratio futures on July 31, pending regulatory review.
"Historically, ether and bitcoin have been highly
correlated; however, as the two assets have grown over time, market
dynamics may affect the performance of one more than the other,
creating relative value trading opportunities," said Giovanni Vicioso, CME Group Global Head of
Cryptocurrency Products. "With the addition of
Ether/Bitcoin Ratio futures, investors will be able to
capture ether and bitcoin exposure in a single trade,
without needing to take a directional view. This new contract will
help create opportunities for a broad array of clients looking to
hedge positions or execute other trading strategies, all in an
efficient, cost-effective manner."
The Ether/Bitcoin Ratio futures will be
cash-settled to the value of CME Group Ether futures final
settlement price, divided by the corresponding CME Group
Bitcoin futures final settlement price. The new
contract will follow the same listing cycle as CME Group
Bitcoin futures and Ether futures contracts.
"The launch of CME Group Ether/Bitcoin Ratio
futures further expands the marketplace for institutions and
sophisticated investors who want digital asset exposure in a
regulated environment," said Jason
Urban, Global Head of Trading at Galaxy. "We're excited to
support this product, which will appeal to investors looking to
take advantage of changes between the two biggest digital assets by
market capitalization. We commend CME Group's ongoing commitment to
developing innovative offerings essential to building an enduring
ecosystem for this asset class."
"The launch of Ether/Bitcoin Ratio futures
completes the currency triangle allowing market makers such as XBTO
the ability to arbitrage synthetically, for the first time, all
three futures legs: the BTC/USD and ETH/USD dollar
legs, and the ETH/BTC cross," said Paul Eisma, Head of Options Trading at XBTO.
"CME Group's innovative, regulated product will help increase
volumes, reduce spreads, and give institutional crypto
market participants a vehicle to express relative value between BTC
and ETH."
"This new ETH/BTC cross-cryptocurrency
contract from CME Group should allow investors
more flexibility when hedging positions in non-dollar offshore
markets," said Brooks Dudley of
Marex Capital Markets, Inc. "This marks another important
advancement for CFTC-regulated cryptocurrency
derivatives."
For more information on cryptocurrency options,
please visit: www.cmegroup.com/ebr.
As the world's leading derivatives marketplace, CME Group
(www.cmegroup.com) enables clients to trade futures, options, cash
and OTC markets, optimize portfolios, and analyze data – empowering
market participants worldwide to efficiently manage risk and
capture opportunities. CME Group exchanges offer the widest range
of global benchmark products across all major asset classes based
on interest rates, equity indexes, foreign
exchange, energy, agricultural
products and metals. The company offers futures and
options on futures trading through the CME Globex® platform, fixed
income trading via BrokerTec and foreign exchange trading on the
EBS platform. In addition, it operates one of the world's
leading central counterparty clearing providers, CME
Clearing.
CME Group, the Globe logo, CME, Chicago Mercantile Exchange,
Globex, and, E-mini are trademarks of Chicago Mercantile
Exchange Inc. CBOT and Chicago Board of Trade are trademarks of Board
of Trade of the City of Chicago,
Inc. NYMEX, New York Mercantile Exchange and ClearPort are
trademarks of New York Mercantile Exchange, Inc. COMEX is a
trademark of Commodity Exchange, Inc. BrokerTec and EBS are
trademarks of BrokerTec Europe LTD and EBS Group LTD, respectively.
The S&P 500 Index is a product of S&P Dow Jones Indices LLC
("S&P DJI"). "S&P®", "S&P 500®", "SPY®", "SPX®", US 500
and The 500 are trademarks of Standard & Poor's Financial
Services LLC; Dow Jones®, DJIA® and Dow Jones Industrial Average
are service and/or trademarks of Dow Jones Trademark Holdings LLC.
These trademarks have been licensed for use by Chicago Mercantile
Exchange Inc. Futures contracts based on the S&P 500 Index are
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S&P DJI makes no representation regarding the advisability of
investing in such products. All other trademarks are the property
of their respective owners.
CME-G
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SOURCE CME Group