CME Group to Launch Euro-Denominated Bitcoin, Ether Futures on August 29

CME Group, the US leading and most diverse derivatives marketplace, announced on Thursday that it will launch Bitcoin Euro and Ether Euro futures on August 29. The move is part of CME’s efforts to expand its cryptocurrency derivatives offering services.

The financial derivatives exchange termed the launch as important as enabling Bitcoin users to trade Euro-dominated Bitcoin (BTC) and Ether (ETH) futures contracts on the regulated exchange.

Tim McCourt, Global Head of Equity and FX Products, CME Group, talked about the development: "Ongoing uncertainty in cryptocurrency markets, along with the robust growth and deep liquidity of our existing Bitcoin and Ether futures, is creating an increased demand for risk management solutions by institutional investors outside the U.S. Our Bitcoin Euro and Ether Euro futures contracts will provide clients with more precise tools to trade and hedge exposure to the two largest cryptocurrencies by market cap.”

CME will unveil Euro-denominated Bitcoin and Ether futures to help meet the rising demand for regulated and expanding, non-USD crypto derivatives.

According to CME, offerings of Euro-denominated Bitcoin and Ether futures contracts could accelerate increasing demand for crypto products from institutional investors.

The products will provide crypto derivative alternatives because the euro, the official currency of 19 out of 27 EU member countries, is the second-most-desired currency in global currency reserves.

CME designed the Bitcoin Euro and Ether Euro futures contracts to match their U.S. dollar-denominated counterparts.

The derivative exchange stated that it will size Bitcoin Euro and Ether Euro futures at five Bitcoins and 50 Ethers per contract. Such new contracts will be cash-settled, based on the CME CF Bitcoin-Euro Reference Rate and CME CF Ether-Euro Reference Rate, which serve as once-a-day reference rates of the euro-denominated price of Bitcoin and Ether.

Rising Infrastructure for The Crypto Investor

CME's Bitcoin Euro and Ether Euro futures are the latest investment products to be launched tied to a cryptocurrency.

In March, CME launched Bitcoin and Ether options on the micro futures contracts of the two largest cryptocurrencies by market capitalization: Bitcoin (BTCUSD) and Ether (ETHUSD).

Last year, the exchange witnessed interest in crypto assets from retail investors, especially Millennials and Gen Zs, reaching new heights.

That was the part of the reason that led CME, in March this year, to launch micro futures to offer more affordable options for investors seeking to gain exposure to Bitcoin and Ether derivative products.

And so far, the company has continued to expand its suite of cryptocurrency derivatives offerings further.

In October last year, the ProShares Bitcoin Strategy ETF (BITO), the first ETF linked to Bitcoin, started trading, providing investors with the opportunity to gain exposure to Bitcoin returns in a convenient, liquid and transparent manner.

Shortly afterwards, several similar Bitcoin ETFs unveiled their trading services which track the future price of the coin.