CME Group Launches Ethereum Option Contracts

CME Group Introduces Ethereum Option Contracts As Blockchain Merger Approaches.

The CME Group (NASDAQ: CME) has introduced options on Ether futures as interest in ETH derivatives spikes ahead of the blockchain’s long-awaited Merge to Proof-of-Stake this week.

Tim McCourt, the company’s global head of Equity and FX Products, said their new options contracts would enhance CME Group’s Ether future. Tim noted that there had been a 43% year-over-year increase in average daily volume.

According to Rob Strebel, Head of Relationship Management for DRW, the new options are an essential part of the trading strategy deployed by Cumberland’s institutional counterparties. He said that whether it is to hedge risk or gain exposure to the asset class without having it on their balance sheets. CME Group facilitates its customers to trade options, cash, futures, and OTC markets.

Global Head of Sales at Genesis, Leon Marshall, also had something to say about the new launch. “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,” he said. “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 offer one Ether future at 50 ether per contract. The price is based on the CME CF Ether-Dollar Reference Rate, which is a reference rate of the U.S. dollar’s daily value for ether.

Ethereum’s long-awaited Proof-of-Stake Merge is happening this week, with many in the cryptocurrency community expecting a spike in ETH prices leading up to and following the event. The CME Group’s new options contracts will give traders a way to hedge their ETH exposure or take a position on anticipated price swings.