CME Group is a top derivative marketplace in the world. And its Bitcoin and Ethereum futures that are pegged to the Euro have begun trading on Monday the 29th of August.
A Promise Kept
CME published a statement on the 28th of August where it stated that the futures will be useful to institutional investors around the world. Institutions will, thus, have access to digital assets while they get an exposure hedge at the same time.
The CME statement has it that the Bitcoin to Euro exchange will be put up at 5 BTC whereas the Ethereum to Euro is already settled at 50 ETH for a contract. Investors have the opportunity of settling the contract with cash through the guidance of CME’s BTC to Euro Rates Reference, as well as the ETH to Euro Rates Reference.
CME Group’s Head of Equity and Foreign Exchange, Tim McCourt, commented on the new futures. He said that the latest futures launch is built on the firm growth and liquidity the company has experienced with its Bitcoin and Ethereum denominated in the US Dollar.
McCourt said further that the new BTC Euro futures and the ETH Euro futures will give institutional investors clear trading tools. Investors in and out of the United States will, by that means, have a hedged exposure to these two cryptocurrencies.
An Alternative to the US Dollar
CME Group has begun this asset trading venture within a month following the company’s announcement that it was going to begin. The announcement, in turn, came on the heel of widespread demand, in the financial market, for a properly regulated crypto derivative that is not linked with the US Dollar.
It should be noted that the demand rose from investors’ need to have a hedge against their risks and also have exposure to crypto assets. These should be on while they keep enjoying liquidity, interests, and increased volume.
CME Group had the highest open interest on a daily basis at 106,200 in the second quarter of this year. The second quarter was also when the company recorded its second-highest daily average volume which was 57,400 for every crypto product.
The crypto winter sent many investors scampering for safety, even back to fiat currencies. Now that the market is not as bad as it used to be, investors might be comfortable hedging their funds in the crypto market again.