CME Group, the world's leading derivatives marketplace, today announced the launch of options on Ether futures.
"As market participants anticipate the upcoming Ethereum Merge, a potentially game-changing update of one of the largest cryptocurrency networks, interest in Ether derivatives is surging," said Tim McCourt, Global Head of Equity and FX Products, CME Group. "The launch of our new Ether options contracts is particularly well-timed to provide the crypto community with another important tool to gain access to and manage exposure to ether. Our new options contracts will also complement CME Group's Ether futures which have seen a 43% increase in average daily volume year over year."
"Options are an essential part of the trading strategy deployed by Cumberland's institutional counterparties, whether that's to hedge risk or gain exposure to the asset class without having it on their balance sheets," said Rob Strebel, Head of Relationship Management for DRW. "CME Group has proven trading and clearing infrastructure backing the product and we're excited to provide liquidity on day one. As ether transitions through the anticipated merge this week, we expect we'll continue to see strong demand for this Ether options contract."
"Genesis is proud to consistently provide day-one support of CME Group's ever-expanding suite of crypto derivatives and offer the newest derivatives products to our institutional clients," said Leon Marshall, Global Head of Sales at Genesis. "The launch of the new Ether options contract ahead of the highly anticipated Ethereum Merge provides our clients with greater flexibility to trade and hedge their Ether price risk."
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.