Nothing stops crypto derivatives – The Chicago Mercantile Exchange (CME) responds to demand from institutional investors gaining exposure to cryptocurrencies and trading with theeurolaunching soon 2 derivative products related to Bitcoin (BTC) et al’Ether (ETH).
BTC and ETH derivatives to conquer the euro zone
The world’s largest derivatives marketplace puts the Bitcoin and theEther in the color of european currency.
According to a communicated from August 4, the Chicago Mercantile Exchange Group plans to launch futures contracts on Bitcoin and Ether which will be denominated in euroson August 29, subject to a green light from the authorities following a regulatory review.
The size of the 2 contracts amounts respectively to 5 BTC and to 50ETH by contract. Unsurprisingly, these new derivatives, which will be settled in cash, will be listed on the CME. Futures contracts will be based on the CME CF Bitcoin-Euro and Ether-Euro benchmark rate.
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Rising demand for euro cryptocurrencies
The WEC justifies this European expansion by putting forward statistics which show the existence of a growing demand for the crypto derivatives to investors trading with the euro.
Euro-denominated cryptocurrencies would be “the second most traded fiat”behind those denominated in dollars, according to Tim McCourt, Global Head of Equity and Currency Products at CME Group.
The EMEA region would concentrate 28% of total trading Bitcoin and Ether futures contracts. Since the beginning of this year, she has been recording “an increase of more than 5% compared to 2021”.
An offer to cover the positions of institutional investors
Tim McCourt presents these Bitcoin and Ether futures contracts as “risk management solutions”. The CME will offer them to institutional investors outside the United States.
These derivative products are described as being more precise tools. They will allow these investors to cover the risks related to exposure to the 2 largest cryptocurrencies, to “continuing uncertainty” in the crypto markets.
With its new derivative products in euros, the CME hopes repeat success of its futures contracts on Bitcoin and Ether in dollars. Or witness growth similar to that recorded by BTC micro-contract exchanges launched by the company last May.
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