The world’s largest financial derivatives exchange is announcing a plan to roll out a new Ethereum-based financial product ahead of the leading smart contract platform’s upcoming upgrade in mid-September.
In a new statement, the CME Group says that it is launching options for Ethereum (ETH) futures on September 12th, pending review and approval by regulators.
“These new contracts deliver one ether futures, sized at 50 ether per contract, and based on the CME CF Ether-Dollar Reference Rate, which serves as a once-a-day reference rate of the U.S. dollar price of Ether.”
Once launched, the new product will expand the firm’s existing cryptocurrency options contracts. CME started to offer options on Bitcoin (BTC) futures in 2020. In March, it debuted options on Micro Bitcoin and Micro ETH futures.
Tim McCourt, global head of equity and FX products at CME Group, says that existing ETH futures on the derivatives marketplace have already traded over 1.8 million contracts.
“As we approach the highly anticipated Ethereum Merge 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 array of clients greater flexibility and added precision to manage their ether exposure ahead of market moving events.”
Increased interest on the new options products is also anticipated from both traditional and crypto focused investors because of The Merge, which will transition Ethereum from the intensive proof-of-work consensus mechanism to a proof-of-stake one.
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/eliahinsomnia/monkographic
Credit: Source link
