Cryptocurrency

CME Group to offer Ether/Bitcoin ratio futures in July

CME Group, a leading derivatives trading platform, has revealed. June 29th It plans to launch Ether/Bitcoin ratio futures trading this summer, pending regulatory approval.

CME Group has announced that it plans to launch a BTC/ETH ratio futures product on July 31, 2023.

A ratio futures contract is a type of futures contract in which the underlying is the ratio of two commodities. This type of contract allows the trader to infer the relative price movements of two different commodities. Contracts are settled in cash based on the difference between the contract price and the spot price of the ratio at the time of settlement.

The company expanded its offering of Bitcoin and Ethereum futures in early 2023. The expansion he announced in April and took effect in May.

Industry insiders comment on the offerings

CME Group Global Head of Cryptocurrency Products Giovanni Vichoso said:

“The addition of Ether/Bitcoin ratio futures will allow investors to gain Ether and Bitcoin exposure in a single trade with no directionality.”

He noted that while Bitcoin and Ethereum prices have historically been “highly correlated,” growth can cause each asset to perform independently.

Jason Urban, global head of trading at Galaxy Digital, added that the investment will create more investment opportunities for institutional investors and “sophisticated investors.” He did not say whether individual users can invest in the fund.

XBTO’s head of options trading, Paul Isma, suggested the fund could have a positive impact on some markets by increasing volume and tightening spreads.

Meanwhile, Brooks Dudley of Marex Capital Markets called the proposal “an important advancement for CFTC-regulated crypto derivatives.”

The Post-CME Group offering of Ether/Bitcoin ratio futures in July first appeared on CryptoSlate.

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