CME Launches Euro-Denominated Crypto Futures

CME Launches Euro-Denominated Crypto Futures


Derivatives alternate CME is increasing its crypto futures choices by way of new euro-denominated crypto derivatives.

The brand new merchandise, anticipated to go reside on August 29, will reference bitcoin and ether and shall be just like present dollar-denominated crypto futures on the alternate.

“The present uncertainty within the cryptocurrency markets, coupled with the robust development and excessive liquidity of our present bitcoin and ether futures, is creating elevated demand for danger administration options from institutional traders exterior of the US. CME.

“Our euro bitcoin and euro ether futures contracts will present purchasers with extra correct instruments to commerce and hedge publicity to the 2 largest cryptocurrencies by market cap.”

McCourt mentioned that by 2022, EMEA accounts for 28% of exchange-traded bitcoin and ether futures contracts and that euro-denominated cryptocurrencies have been the second most traded fiat foreign money after the greenback.

Regardless of the continued crypto winter, many corporations have continued their digital asset enlargement. On Aug. 4, BlackRock partnered with cryptocurrency alternate Coinbase to permit asset managers to commerce crypto by way of its Aladdin funding administration system. The day earlier than, Revolut introduced that it will supply to commerce 22 new digital tokens, and in Might, Nomura mentioned it will launch a brand new digital asset firm.

READHow Revolut, Constancy, and Binance Search to Capitalize on the Crypto Crash

Nonetheless, most institutional traders can’t commerce cryptocurrencies within the spot market. As a substitute, they depend on by-product merchandise for publicity. McCourt had beforehand mentioned monetary information that cryptocurrency buying and selling volumes on the CME have been usually on par with, if not bigger than, most cryptocurrency exchanges.

European crypto market individuals have welcomed the brand new CME choices.

“CME Group’s launch of euro-denominated bitcoin and ether futures will assist meet the rising demand for sturdy, regulated non-US greenback crypto derivatives,” mentioned Edmond Goh, chief working officer of B2C2, a crypto market liquidity supplier. .

Sam Newman, head of digital asset brokerage at TP ICAP, was additionally excited concerning the announcement.

“Curiosity in crypto property has seen super development, and these new euro-denominated futures contracts will assist additional broaden the accessibility and utility of crypto asset derivatives, significantly inside Europe,” he mentioned.

The CME reported that the second half of this yr has been a document quarter for crypto futures with a median of 106,000 contracts in open curiosity. It was additionally the second finest quarter by way of quantity, averaging 57,000 day by day.

To contact the creator of this story with feedback or information, electronic mail Jeremy Chan

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