The US-based exchange CME announced its plans to launch Ethereum-pegged futures in February 2021. CME was one of the first traditional financial markets to launch bitcoin futures trading in 2017.
Chicago Mercantile Exchange (CME) Group announced the launch of new digital asset futures based on Ethereum price. The launch is scheduled for February 8, 2021, but will only take place subject to the necessary approvals from the US regulatory authorities.
“As with any new product or service, we made the decision to launch Ether futures based on strong customer demand and a clearly articulated customer need,” the CME website says.
The exchange reminds that Ethereum is the second cryptocurrency in terms of both market capitalization and daily trading volume.
According to the provided specifications, Ethereum futures contracts will be settled in cash and based on the CME CF Ether-Dollar reference rate. Like CME Bitcoin futures, Ethereum futures contracts do not involve physical delivery of an asset. One contract will be equal to 50 ETH. The maximum order size for futures is set at 100 contracts. The minimum step is $ 0.25 per ether or $ 12.5 per contract.
“As CME Bitcoin futures approach their third anniversary on Dec. 17, there has been significant growth in their adoption from a broad array of participants, including institutional investors,” the company said in a statement.
CME Group launched bitcoin derivatives futures contracts in December 2017 as bitcoin was approaching its all-time high of $20,000.
In November 2020, the amount of open positions in bitcoin futures on CME came close to the $ 1 billion mark, and the number of large traders in bitcoin futures exceeded 100 for the first time.