“High Demand” For Crypto Products Outside US: CME Launches New Futures

Owing to the demands of investors outside the U.S., derivatives marketplace CME is all set to launch crypto Euro futures. Subject to regulatory review, the company will on August 29 launch Bitcoin Euro and Ether Euro futures. This expansion from the cryptocurrency derivatives offering will be similar to the U.S. dollar-denominated crypto futures, it said. Just like the dollar futures contracts, the Bitcoin and Ether Euro futures will have five BTC and 50 ETH per contract.

Demand For Crypto Products In Euro Denominations

Also, the Euro contracts will be cash-settled based on the reference rates of the euro-denominated price of bitcoin and ether. Tim McCourt, Global Head of Equity and FX Products, CME Group, said there was increased demand for such products beyond the U.S.. Euro-denominated cryptocurrencies are the second highest traded fiat behind the U.S. dollar, he added.

“Ongoing uncertainty in cryptocurrency markets, along with the robust growth and deep liquidity of our existing Bitcoin and Ether futures, is creating increased demand for risk management solutions by institutional investors outside the U.S.. Our Bitcoin Euro and Ether Euro futures contracts will provide clients with more precise tools to trade and hedge exposure to the two largest cryptocurrencies by market cap.”

Meanwhile, CME aims at serving more markets for crypto products beyond the U.S., amid growing demand for regulated options. The launch of euro-denominated Bitcoin and Ether futures from CME Group will help meet the growing demand for regulated and robust non-USD crypto derivatives, Edmond Goh, Head of Trading at B2C2, said.

CME’s Micro BTC And ETH Futures

Earlier this year in March, the CME Group launched options on micro Bitcoin and micro Ethereum futures. In response tp growing interest in cryptocurrency exposure, the products were launched in addition to derivatives on Bitcoin and Ethereum.

In recent times, CME’s crypto products performed quite well in terms of daily volumes and open interest. The second quarter was a record quarter in terms of average daily open interest with 106,200 contracts. The quarter was also the second highest ever in terms of average daily volume with 57,400 contracts. With a growth of over 27% compared to last quarter, CME’s Ethereum futures achieved record average daily volume of 6,600 contracts.