Major derivatives exchange Chicago Mercantile Exchange Group intends to launch options trading for its Ether (ETH) futures products.
In an announcement Thursday, the CME Group said that, subject to regulatory review, it plans to launch options contracts for its Ether futures, sized at 50 ETH per contract. Futures options, expected to begin trading on September 12, will follow the launch of micro-sized Bitcoin (BTC) and Ether options in March 2022, BTC options trading products in January 2020, and a BTC futures contract in December 2017.
CME Group Global Head of Equity and Currency Products Tim McCourt cited the upcoming transition of the Ethereum blockchain to proof-of-stake — also known as Merge — when announcing the ETH futures product.. McCourt said the group had seen an increase in trading volume and open interest for ETH futures and micro-sized ETH futures options, possibly in anticipation of the merge.
“We have […] seen increased activity in our September and December Ether Micro options, which could also suggest that participants are hedging risk around the proposed date of the merger”McCourt said in a statement shared with Cointelegraph. “78% of the Micro Ether options open interest is in the September and December contracts.”
Looking for a new opportunity to add the flexibility of options to your cryptocurrency portfolio? Meet CME Group’s Ether options, launching Sept. 12. https://t.co/yHc3s6oL9h pic.twitter.com/wlKTGNyE5K
— CME Group (@CMEGroup) August 18, 2022
Looking for a new opportunity to add the flexibility of options to your cryptocurrency portfolio? Learn about CME Group’s Ether options, launching on September 12
The CME Group reported a 7% increase in average daily ETH futures trading volume from June to July and a 41% increase in the same volume of ETH micro futures contracts.. Trading activity for ETH and cryptocurrency-linked investment vehicles could see significant volume ahead of the Merger, which core developers expect to happen on September 15.
According to data from Cointelegraph Markets Pro, the price of ETH is $1,863 at press time, having risen 2% in the last 24 hours. The token reached an all-time high price of approximately $4,800 in November 2021.
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