Derivatives Marketplace Offers New Crypto-Based Product

The new crypto-based product offered by the major derivatives marketplace fits in with the variety of products they have developed since launching their BTC futures contracts in 2017.

The CME Group's launch of options trading for its Ether (ETH) futures products is a positive development for the cryptocurrency market. The move will provide more flexibility and opportunity for investors to trade ETH, and comes at a time when the Ethereum network is preparing for a major upgrade. This is positive news for the cryptocurrency community and underscores the growing interest and legitimacy of digital assets.

The launch of the new futures contract is "well timed," CME Group global head of equity and FX products Tim McCourt said in a statement.

“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.”

The CME Group's announcement of its intention to launch futures options is good news for the cryptocurrency community. The new contracts will deliver one Ether futures at 50 ether per contract, based on a reference rate of the U.S. dollar price of ether updated daily. This will provide a much-needed boost to the Ethereum market and will help to legitimize cryptocurrencies as a whole.

The CME Group's new Bitcoin futures contracts are a welcome addition to the existing lineup of products. The group's Bitcoin (BTC) and ETH derivatives contracts saw record-high interest in the second quarter of this year, despite the crypto winter. This shows that there is still strong demand for cryptocurrency products despite the current market conditions.

The CME Group's introduction of a BTC options trading product in January 2020 was a groundbreaking move that paved the way for other exchanges to follow suit. The CME's launch of micro Ether futures contracts in December 2021 and options contracts for its existing micro BTC and ETH futures in March 2022 further solidified its position as a leading provider of digital assets trading products and services. The CME's euro-denominated BTC and ETH futures contracts offer investors another way to trade these popular digital assets.

Ethereum developers have confirmed that the Ethereum blockchain is ready for “The Merge,” during which it will transition from a Proof-of-Work to a Proof-of-Stake consensus mechanism. The Merge is expected to occur Sept. 15. This is a significant event for the Ethereum community, as the transition to a Proof-of-Stake consensus mechanism has been hotly anticipated.

ETH is currently trading at $1,715, down 3.23% in the last 24 hours. The release of the August U.S. Consumer Price Index (CPI) data on Sept. 15 could lead to greater price instability.