Feb 21, 2024 12:25
The global derivatives marketplace CME Group plansto expand its cryptocurrency derivatives suite with Bitcoin and ether futures.Dubbed Micro Bitcoin Euro and Micro Ether Euro futures, the products will belaunched on March 18, pending regulatory approval.
CME Group Enhances Crypto Hedging
Giovanni Vicioso, the Global Head of CryptocurrencyProducts at CME Group, mentioned: "The launch of these new MicroEuro-denominated contracts will provide clients with additional products tomore efficiently hedge Bitcoin and ether exposure in the second-highest tradedfiat behind US dollar-based contracts."
"Year-to-date, 24% of Bitcoin and ether futuresvolume at CME Group has been transacted from the EMEA region, and we continueto develop additional tools for clients there to hedge their crypto portfoliosand express or take a view on potential market moves."
Available March 18*, CME Group is introducing a second currency pair on our Micro Bitcoin and Micro Ether futures, Euro-denominated Bitcoin and Ether futures contracts. *Pending regulatory review https://t.co/juxh2N2wDr
CME Group (@CMEGroup)
February 20, 2024According to the press release, addingEuro-denominated contracts offers investors more efficient avenues forhedging exposure to the top cryptocurrencies. Micro Bitcoin Euro and Micro Ether Euro futures will mirror their USD-denominated counterparts. These futures will belisted on CME Group, providing clients with standardized contracts to manage theircrypto portfolios.
During the second quarter of 2023, there was asignificant surge in institutional investments in Bitcoin and ether futures,influenced by the escalating value of crypto assets and the surge inapplications for spot Bitcoin ETFs. According to a report by Finance Magnates, CME Group reported a notable growth in the number of institutional investors holdingBitcoin and ether futures contracts.
Bitcoin and Ether Futures Market
The CME Group reported that an average of 107institutional investors held at least 25 Bitcoin futures contracts, while 62held ether futures contracts during the same period. This surge in interesthighlighted the growing acceptance of crypto derivatives as legitimateinvestment tools.
The rise in institutional investments paralleled theupward trajectory of Bitcoin and ether prices. Bitcoin witnessed a surge of 84% in the first half of last year.
Open interest in standard Bitcoin futures contractsalso surged by 15% year-over-year, indicating a robust market demand forBitcoin exposure. The rising interest among institutional clients was partlyattributed to the applications for spot Bitcoin ETFs in the US.
This article was written by Jared Kirui at www.financemagnates.com.
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