YEREVAN (CoinChapter.com) — CME Group, the leading global derivatives marketplace, has revealed its upcoming launch of Ether (ETH) and Bitcoin (BTC) Ratio futures on July 31, 2023. The project, although exciting, is still pending regulatory approval.
Giovanni Vicioso, the Global Head of Cryptocurrency Products at CME Group, explained that while ether and bitcoin have historically displayed a strong correlation, the growth and evolving market dynamics of these assets have created opportunities for relative value trading.
“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,”
Vicioso said in an official press release.
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CME Group supporting institutional investors through futures offer
According to the press release, the Ether/Bitcoin Ratio futures will be settled in cash based on the final settlement price of CME Group’s Ether futures divided by the corresponding final settlement price of CME Group’s Bitcoin futures. This new contract will also follow the same listing cycle as CME Group’s Bitcoin and Ether futures contracts.
Jason Urban, the Global Head of Trading at Galaxy, echoed CME’s excitement for the product. According to him, the release of Ether (ETH) and Bitcoin (BTC) Ratio futures will cater to investors seeking to capitalize on changes between the two largest digital assets by market capitalization.
“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,”
Urban remarked, as per the release.
Brooks Dudley of Marex Capital Markets, Inc. called the development an “important advancement for CFTC-regulated cryptocurrency derivatives.”
CME Group is one of the world’s leading derivatives marketplaces. The company empowers clients globally to trade futures, options, cash, and OTC markets, as well as optimize portfolios and analyze data.
The group also offers a comprehensive range of benchmark products across major asset classes. The company’s exchanges also cater to interest rates, equity indexes, foreign exchange, energy, agricultural products, and metals.
CME Group’s plan to launch crypto Ratio futures next month comes as exciting news for the industry. It could have bullish implications for the cryptocurrency market.
