CME Group, a major derivatives trading platform, further said June 29 that it will launch Ether/Bitcoin ratio futures this summer, pending regulatory approval.
CME Group said it plans to launch its BTC/ETH ratio futures product on July 31, 2023.
A ratio futures contract is a type of futures contract where the underlying asset is a ratio of two commodities. This type of contract allows traders to speculate on the relative price movement of two different commodities. The contract is settled in cash based on the difference between the contract price and the ratio spot price at the time of settlement.
Furthermore, the company expanded its range of Bitcoin and Ethereum futures in early 2023. That expansion was announced in April and took place in May.
Industry members respond to the offer
Giovanni Vicioso, CME Group Global Head of Cryptocurrency Products, said:
“With the addition of Ether/Bitcoin Ratio futures, investors can capture Ether and Bitcoin exposure in a single trade, without having to take a directional stance.”
He noted that Bitcoin and Ethereum prices have been “highly correlated” in the past, but growth has led each asset to perform independently at times.
Jason Urban, Global Head of Trading at Galaxy Digital, added that the investment will expand investment opportunities for institutions and “sophisticated investors”. He did not specify whether private users can invest in the fund.
Paul Eisma, Head of Options Trading at XBTO, suggested the fund could positively impact some markets by increasing volumes and narrowing spreads.
Meanwhile, Marex Capital Markets’ Brooks Dudley called the offering a “major advancement for CFTC-regulated cryptocurrency derivatives.”
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