CME Group to Launch ETH/BTC Ratio Futures: Institutional Investors Rejoice

• CME Group, the leading global derivatives marketplace, has announced plans to launch a new Ether (ETH) / Bitcoin (BTC) Ratio futures contract on July 31, 2023.
• The contract will be settled in cash based on the final settlement prices of both CME Group’s Ether and Bitcoin futures contracts.
• This product is aimed to provide investors with an efficient way to capture ether and bitcoin exposure without needing to take a directional view.

CME Group Announces Upcoming Launch of Ether/Bitcoin Futures

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 is still pending regulatory approval. Giovanni Vicioso, the Global Head of Cryptocurrency Products at CME Group, noted that while ether and bitcoin have historically displayed a strong correlation, this new contract will help create opportunities for investors looking to hedge positions or execute other trading strategies.

Ether/Bitcoin Ratio Futures Contract Details

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.

Reactions from Industry Professionals

Jason Urban, the Global Head of Trading at Galaxy commented that this product would appeal to investors looking to take advantage of changes between ether and bitcoin as they are two biggest digital assets by market capitalization. Brooks Dudley from Marex Capital Markets called this development an “important advancement for CFTC-regulated crypto markets”.

Benefits for Investors

Vicioso highlighted that with this new offering investors can capture ether and bitcoin exposure in a single trade without needing to take a directional view. He further explained that it would be an efficient and cost-effective manner for clients to access these opportunities in crypto markets.

Conclusion

All in all, Ethereum/Bitcoin ratio futures offer institutional investors with an effective way to gain exposure into both assets without having to make any directional bet while providing them with hedging capabilities as well as cost efficiency benefits compared with traditional products available in cryptocurrency markets