TL;DR Breakdown:
- CME Group announced that Ether futures would be listed on the exchange in the next year.
- The product will open up more exposure to ETH in a risk-mitigated manner.
The largest global financial derivatives exchange, Chicago Merchantile Exchange (CME), announced Thursday that it would launch and support the trading of Ether futures in the coming year. This is quite an important development that will enable more institutional exposure to the second-largest digital currency. Already, the derivative exchange supports the futures and options trading of the largest cryptocurrency, Bitcoin (BTC), with high demand from investors.
Ether futures on CME
To be precise, the derivative exchange informed in the announcement that the cash-settled Ether futures would be launched in February next year. At the moment, it is awaiting regulatory review and will be listed in compliance with the exchange’s rules. The development comes amid high demand for CME BTC futures. “We believe the addition of Ether futures will provide our clients with a valuable tool to trade and hedge this growing cryptocurrency,” CME Group’s Tim McCourt said.
Ultimately, the Ether futures will enable investors to participate in the Ethereum market, holding the digital currency without direct exposure to the risk associated with holding just ETHs. Many people believe that the product will gain traction when it launch, following the price growths, interests, and developments in the Ethereum ecosystem. The price of Ether surged to another yearly high of $$656 on BitME yesterday, as Bitcoin did. Currently, the crypto trades at $648 on Coinmarketcap.
Ether fund launches in Canada
Notably, the news of the Ether fund on CME comes a few days after the Toronto Stock Exchange (TSX) announced the listing of an Ether fund. The development followed the successful completion of the fund’s Initial Public Offering (IPO), which was expected to raise at least $10.75 million. The listing of the product marks as the first-ever listed and regulated Ethereum fund product.
