CME Group, the world’s leading derivatives exchange, has announced its plans for an innovative product that is sure to excite investors. Futures contracts on the ratio of Ethereum to Bitcoin are to be launched soon, expanding the possibilities for speculation around the digital asset.
Details of Ethereum – Bitcoin futures ratio
The launch date for this new instrument has been set for July 31, but it still requires regulatory approval. In the product description on the CME Group’s website appears the ticker EBR, which represents futures contracts on the ETH/BTC ratio. The final settlement price of ETH will be divided by BTC, creating an always-positive ratio in all months of the contract.
Giovanni Vicioso, CME Group’s global director responsible for cryptocurrency products, stresses that both Ether and Bitcoin are historically highly correlated. However, as the two assets evolve, changes in the market may affect one more than the other, opening up new opportunities for relative value trading.
The ratio futures contract to be launched will allow investors to speculate or hedge against changes in the value of the two underlying assets. It offers a fixed ratio between Ethereum and Bitcoin, allowing positions to be taken based on expectations of future changes in the ratio.
ETH/BTC ratio will fill an important gap
According to Vicioso, the introduction of futures on the ETH/BTC ratio will be an excellent opportunity for a wide range of clients who want to hedge their positions or pursue different trading strategies, all in an efficient and cost-effective manner.
It is worth recalling that CME Group made its debut on the cryptocurrency market in December 2017, introducing Bitcoin futures. The move had a huge impact on the market, paving the way for institutional investors to safely trade Bitcoin futures. It also became a factor that contributed to greater acceptance and liquidity in the cryptocurrency market.
CME Goup strengthens its influence on the cryptocurrency market
Now, several years later, CME Group continues to expand its digital asset offering. The exchange offers options on Bitcoin and Ethereum, as well as futures contracts on micro BTC and micro ETH. This is another step in expanding investment opportunities in the cryptocurrency market and confirming CME Group’s role as a leading player in the derivatives industry.