CME Group to Offer Ethereum Options to Market Participants 3 Days Before Merger – Bitcoin News

CME Group to Offer Ethereum Options to Market Participants 3 Days Before Merger – Bitcoin News

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

CME Group Reveals Ethereum Options Launch

The Chicago Mercantile Exchange, also known as the CME Group, revealed the company’s intentions to list ethereum options contracts three days before The Merge on September 12, 2022. CME detailed that the new ether options join the company bitcoin (BTC) options and micro-sized bitcoin and ether options contracts.

“These new contracts offer ether futures, sized at 50 ether per contract, and are based on the CME CF Ether-Dollar benchmark rate, which serves as a daily U.S. dollar ether price benchmark rate,” the derivatives market said on Thursday. CME global head of equity and currency products Tim McCourt noted on Thursday that the new ether options contracts add to the company’s existing line of crypto derivatives products.

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

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

CME Group will offer Ethereum options to market participants 3 days before the merger
Current ethereum (ETH) options statistics from The Block’s Crypto Data on Aug 18, 2022.

CME Group will join a number of exchanges already offering ethereum options contracts, including Deribit, Okex, Bit.com and Huobi. In July, there was $11.38 billion in ether options volume with Deribit commanding $10.86 billion from the four exchanges that list ETH options. Ether options open interest 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 dwarfs CME, as CME Group is the second largest in terms of open interest in bitcoin options with $441 million recorded on August 17. Likewise, CME is the third largest in terms of bitcoin options volume, while Deribit takes the lead. Okex manages to capture a touch 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 Ether Options. TP ICAP Digital Assets is pleased to support CME Group in launching its full-size Ether options contract,” TP ICAP Brokerage Head Sam Newman commented during the announcement. “This larger Ether option, along with the already popular Micro Ether option, has been eagerly awaited by TP ICAP 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, ether micro options, Okex, Open Interest , PoS, PoW, The Merge, Tim McCourt, TP ICAP Digital Assets, Volume

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 lead at Bitcoin.com News and a fintech journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about 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 credits: Shutterstock, Pixabay, Wiki Commons, The Block Crypto Data

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