CME Announces Launch of its Ether Futures In February 2021, ETH price Up 5.6%

Bhushan Akolkar
December 16, 2020
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CME Group Taps Google Cloud For Asset Tokenization,

Finally, the Chicago Mercantile Exchange (CME) and the first to launch Bitcoin futures in December 2017 has come with yet another major announcement. After a long wait of three years, CME has finally announced the launch of Ether (ETH) futures next year in February 2021.

Just like its Bitcoin Futures, the CME Ether Futures will be cash-settled based on the CME CF Ether-Dollar Reference Rate. Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products said:

“Based on increasing client demand and robust growth in our Bitcoin futures and options markets, we believe the addition of Ether futures will provide our clients with a valuable tool to trade and hedge this growing cryptocurrency.

Ethereum is the second-largest cryptocurrency by both market capitalization and daily volume. The introduction of listed Ether futures to our time-tested, regulated CME Group derivatives marketplace will help to create a forward curve so Ethereum market participants can better manage price risk.”

Rising Institutional Demand for Ethereum (ETH)

After Bitcoin, Ethereum remains the top investment choice in crypto for institutional players. Over the last few months, institutional inflows in Ethereum have shot up. Also, digital asset manager Grayscale has been stacking up ETH every week. Currently, the Grayscale Ethereum Trust (ETHE) holds $1.7 billion worth of assets under management.

The ETHE alone contributes over 12% of Grayscale’s total crypto portfolio. Also, the shares of the Grayscale Ethereum Trust (ETHE) have surged nearly 275% in Q4 2020 so far.

As of writing this article, the crypto markets have gone crazy as Bitcoin breaks past $20,000 levels and is currently trading at its new all-time high of $20,570 levels. At the same time, ETH price has also shot 5.6% and is currently trading at $618 with a market cap of $79.4 billion.

The Ethereum network has also seen some important development this year. The rising in DeFi has also made ETH one of the most transacted cryptocurrencies in 2020. Also, the recent launch of Ethereum 2.0 Beacon Chain has kickstarted the journey for the Ethereum PoS blockchain network.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.