The Chicago Mercantile Exchange (CME) Group announced its intention to launch Ether/Bitcoin futures on July 31, pending regulatory approval. CME Group unveiled its plans for this new product on June 29 to provide traders with the opportunity to speculate on the relative price movements between two popular cryptocurrencies.

These futures contracts will be settled in cash and are dependent on the final prices of CME Group Ether futures divided by Bitcoin futures. The listing cycle for the Ether/Bitcoin Ratio futures will follow the same pattern as CME Group's existing Bitcoin and Ether futures contracts.

For the uninitiated, Ratio futures contracts involve using the ratio between two commodities as the underlying asset. This type of contract allows traders to benefit from the price difference between two commodities.

The settlement is made in cash, based on the difference between the contract price and the spot price multiple at the time of settlement. Giovanni Vichioso, global head of cryptocurrency products at CME Group, highlighted the relative value potential of trading opportunities between Ether and Bitcoin. Vicioso noted that while the two assets have historically shown high correlation, their market dynamics may now differ, creating opportunities to profit from differences in their performance.

“With the addition of Ether/Bitcoin Ratio futures, investors will be able to gain exposure to Ether and Bitcoin in a single trade, without the need to navigate. This new contract will help create opportunities for a wide range of clients looking to hedge positions or implement other trading strategies, all in an efficient and cost-effective manner.”

Giovanni Vicioso, Global Head of Crypto Products at CME Group

Expanding CME Group's crypto offerings

CME Group is steadily expanding its offerings in the cryptocurrency space. In 2017, the company announced plans to launch Bitcoin futures, marking a major milestone in the mainstream financial acceptance of cryptocurrencies.

Despite concerns about possible market manipulation and volatility, CME went ahead with the launch, and Bitcoin futures have become an important tool for institutional investors seeking exposure to BTC. In February 2021, CME Group introduced Ether futures, further expanding its range of crypto derivatives products . Later that year, Micro Bitcoin and Micro Ether futures were launched, providing investors with lower capital requirements to access these digital assets.

Additionally, in August, CME Group added Bitcoin Euro and Ether Euro futures to its portfolio.

Coinbase, a US-based cryptocurrency exchange, recently announced its plans to offer Bitcoin and Ether futures contracts, aiming to attract institutional investors. #BTC #Bitcoin $BTC