CME Group Offers Market Participants Ethereum Options 3 Days Before Merger – Finance Bitcoin News

CME Group Offers Market Participants Ethereum Options 3 Days Before Merger – Finance Bitcoin News

Three days before Ethereum’s transition from proof-of-work (PoW) to proof-of-stake (PoS), the world’s largest derivatives market by volume, CME Group, announced plans to list ethereum options. As CME’s ether option product prepares for regulatory review, the company specified that the options contract will be measured at 50 ether per contract, using the CME CF Ether-Dollar Reference Rate.

CME Group Reveals Launch of Ethereum Alternatives

The Chicago Mercantile Exchange otherwise known as CME Group revealed the company’s intentions to list ethereum options contracts three days ahead of The Merge on September 12, 2022. CME detailed that the new ether options join the firm’s bitcoin (BTC) and microbit bitcoin options and ether option contracts.

“These new contracts deliver one ether futures, size 50 ether per contract, and based on the CME CF Ether-Dollar Reference Rate, which serves as a once-daily reference rate for the US dollar price of ether,” the derivatives. the marketplace said Thursday. CME’s global head of equity and currency products, Tim McCourt, noted Thursday that the new ether options contracts add to the company’s existing range of crypto derivatives products.

“The launch of these new options contracts builds on the significant growth and deep liquidity we’ve seen in our existing Ether futures, which have traded more than 1.8 million contracts to date,” McCourt said in a statement. The CME chief added:

As we approach the highly anticipated Ethereum merger next month, we continue to see market participants turn to CME Group to manage ether price risk. Our new ether options will offer a wide range of clients greater flexibility and increased precision to manage their ether exposure ahead of market moving events.

CME Group offers market participants Ethereum options 3 days before the merger
Current ethereum (ETH) options statistics from The Block’s cryptodata August 18, 2022.

CME Group will join a number of exchanges that already offer ethereum options contracts, including Deribit, Okex, Bit.com and Huobi. In July, there was $11.38 billion in ether options volume, and Deribit commanded $10.86 billion of all four exchanges listing ETH options. The open interest ether options market share is also dominated by Deribit, compared to open interest figures associated with Huobi, Okex and Bit.com.

In terms of bitcoin options, Deribit also outshines CME as CME Group is the second largest in open interest for bitcoin options with $441 million recorded on August 17th. Similarly, CME is the third largest in terms of bitcoin options volume, while Deribit takes the lead. Okex manages to capture a bit more volume when it comes to bitcoin options.

With the new CME ether options, TP ICAP Digital Assets and Akuna Capital support the rollout of CME’s ether options. TP ICAP Digital Assets is pleased to support CME Group in the rollout of its full-size Ether options contract,” said TP ICAP Head of Brokerage Sam Newman during the announcement. “This larger size Ether option, in tandem with the already popular Micro Ether option, has been highly anticipated by TP ICAP’s customers.”

Tags in this story

Akuna Capital, Bit.com, CME, CME Ether Options, CME Group, deribit, Deribit Bitcoin Options, ETH, Ethereum, Ethereum Merge, ethereum options, Ethereum Options contracts, Huobi, micro ether options, Okex, Open Interest, PoS, PoW , The Merge, Tim McCourt, TP ICAP Digital Assets, Vol

What do you think about CME Group offering ethereum options on September 12, 2022? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is the news editor at Bitcoin.com News and a financial technology journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today.




Image credit: Shutterstock, Pixabay, Wiki Commons, The Block Crypto Data

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