CME Group Pushes Deeper Into Crypto As Ethereum, Bitcoin Futures Now Available As A Euro-Denominated Option

Chicago Mercantile Exchange Group (CME) announced on Monday the launch of euro-denominated Bitcoin BTC/USD and Ethereum ETH/USD futures.

Tim McCourt, global head of equity and FX products at CME Group, said the new products are made to allow institutional investors another way to buy the cryptocurrencies in a controlled environment.

"Ongoing uncertainty in cryptocurrency markets, along with the robust growth and deep liquidity of our existing Bitcoin and Ethereum futures, is creating an increased demand for risk management solutions by institutional investors outside the U.S.,” said McCourt. "Euro-denominated cryptocurrencies are the second highest traded fiat behind the U.S. dollar.”

In December 2017, the CME Group introduced its first Bitcoin futures contract. In February 2021 it introduced an Ethereum futures contract. The derivatives exchange added micro Bitcoin and Ethereum futures to its lineup of crypto investment products in 2022.

Read more: 'Crypto Safe Haven' Singapore Mulls New Rules That Would Make It Tougher To Trade Bitcoin, Ethereum, Dogecoin

"Our new Bitcoin Euro and Ether Euro futures will provide institutional clients, both within and outside the U.S., with more precise and regulated tools to trade and hedge exposure to the two largest cryptocurrencies by market cap,” McCourt said on Monday.

The press release stated that the size of the Bitcoin Euro and Ether Euro futures contracts will be five Bitcoins and 50 Ethereum per contract, respectively. The CME CF Bitcoin-Euro Reference Rate and CME CF Ether-Euro Reference Rate, which serve as once-daily reference rates of the euro-denominated price of Bitcoin and Ethereum, will be used as the basis for the cash-settled contracts.