Just In: CME Group Launches Euro Based Bitcoin, Ethereum Futures

Derivatives marketplace CME Group had on Monday launched the Bitcoin Euro and Ether Euro futures owing to demand outside U.S.. The company earlier said Euro-denominated crypto assets are second highest traded fiat behind the U.S. dollar. CME’s Euro futures contracts are aimed at providing clients with more precise tools, it said.

CME Euro Bitcoin Futures, On Popular Demand

Tim McCourt, Global Head of Equity and FX Products, CME Group, said the decision to launch Euro products was based on strong growth in Dollar based futures. “The launch of these new futures contracts builds on the strong growth and deep liquidity we have seen in our existing U.S. dollar-denominated Bitcoin and Ether futures contracts.” The Euro futures products will help clients with more precise and regulated tools to trade and hedge exposure, he explained.

“Our new Bitcoin Euro and Ether Euro futures will provide institutional clients, both within and outside the U.S., with more precise and regulated tools to trade and hedge exposure to the two largest cryptocurrencies by market cap.”

CME said the new Bitcoin Euro and Ether Euro futures contracts will be sized at five bitcoin and 50 ether per contract. The new contracts will be cash-settled based on the CME CF Bitcoin-Euro Reference rate and CME CF Ether-Euro reference rate. It will serve as once-a-day reference rates of the euro-denominated price of Bitcoin and Ether, the company said.

Expansion To Outside U.S.

The launch of Euro denominated futures goes in line with CME’s plans to expand crypto products beyond the U.S., as demand grows for regulated options. The product launch comes after the CME futures saw record demand in the last quarter. The second quarter saw a record growth in terms of average daily open interest at 106,200 contracts. Whereas the quarter was also the second highest ever in terms of average daily volume which stood at 57,400 contracts.