Just-In: CME Clears Regulatory Hurdle, Launches Ether (ETH) Options Ahead Merge

The world’s leading derivatives marketplace CME Group on Monday said it has launched Ether (ETH) options on futures. CME earlier announced launching the Ether options contact but was pending regulatory approval. Moreover, the launch of Ether options ahead of the anticipated Merge will offer better flexibility to clients to trade and hedge their Ether price risk.

CME Launches ETH Options on Futures

According to a press release on September 12, CME Group has successfully gained regulatory approval to launch Ether options on futures. The Ether options contract will deliver one Ether futures, with a size of 50 Ether per contract, based on the CME CF Ether-Dollar Reference Rate, which serves as a once-a-day reference rate of the U.S. dollar price of Ether.

Tim McCourt, Global Head of Equity and FX Products, CME Group, asserts a growing interest in Ether derivatives as Ethereum transitions to proof-of-stake (PoS) after the Merge. The new Ether options contract is carefully planned to time with the Merge. Also, it allows clients to gain access to and manage exposure to Ethereum (ETH).

“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 firms DRW and Genesis Capital believe CME’s proven trading and clearing infrastructure offers clients greater flexibility to trade and hedge Ether price risk. The launch of the Ether options contract ahead of the Merge brings strong demand from retail and institutional clients.

Ethereum (ETH) Merge Readiness Reaches 99%

According to OKLink’s Merge Countdown, the Ethereum Merge readiness is now 99.66% complete as Ethereum clients and developers push for the successful implementation of the Merge. As the exact date depends on the hash rate, the Merge is likely to happen on September 15 at 04:00 UTC. In fact, the network hash rate has dropped to 872 TH/s.

Moreover, nearly 85% of clients are now ready for the Paris upgrade and the Merge, as per data by Ethernodes. At the time of writing, the ETH price is trading near the $1750 level.