Derivatives marketplace CME Group today announced the launch of options on Ether futures.
In the official announcement shared with LeapRate, Tim McCourt, Global Head of Equity and FX Products, CME Group, noted that as Ethereum Merge, the update of one of the largest cryptocurrency networks, is approaching, interest in Ether derivatives is rising.
Tim McCourt, Global Head of Equity and FX Products, CME Group, said:
The launch of our new Ether options contracts is particularly well-timed to provide the crypto community with another important tool to gain access to and manage exposure to ether. Our new options contracts will also complement CME Group’s Ether futures which have seen a 43% increase in average daily volume year over year.
Capital market company DRW Holdings, LLC will provide liquidity on day one of the launch of the Ether Options.
Rob Strebel, Head of Relationship Management for DRW, added:
As ether transitions through the anticipated merge this week, we expect we’ll continue to see strong demand for this Ether options contract.
Furthermore, digital currency prime brokerage Genesis will provide support of CME Group’s expanding suite of crypto derivatives and offer the newest derivatives products to its institutional clients. Leon Marshall, Global Head of Sales at Genesis, stated that the new launch of Ether options contract ahead of the Ethereum Merge provides the clients of the company with greater flexibility to trade and hedge their Ether price risk.
CME Group detailed in the press release that the new contracts deliver one Ether futures, sized at 50 ether per contract, and based on the CME CF Ether-Dollar Reference Rate, which serves as a once-a-day reference rate of the US dollar price of ether.
