The Chicago Mercantile Exchange, or CME, recently announced plans to expand its offering to include Ethereum (ETH) futures, three years after the start of the Bitcoin (BTC) futures. The market development influenced the decision of the stock exchange to diversify.
“Since we introduced the real-time benchmark and index CME CF Ether-Dollar in 2018, Ether transactions increased significantly and customer demand for tools to manage price risk increasedA CME representative told Cointelegraph.
Similar to CME’s Bitcoin benchmark rate The CF Ether-Dollar reference price and the real-time index essentially show the current market price of ETH. “As with every new product or service, We made the decision to launch Ether Futures based on strong customer demand and a clearly defined needSaid the representative. “The inclusion of Ether Futures in a regulated and proven market will help create a forward curve for investors to hedge their exposure to the spot market.”
The CME announced the announcement on December 16. Plans to launch products in February 2021. Regulation is still a factor in the equation, however. “We are committed to the CFTF [Commodity Futures Trading Commission] We currently intend to carry out the certification at the beginning of the first quarter, ”said the CME representative.
The proceeds from CME’s Bitcoin futures trading hit the market on December 17, 2017a little over three years ago. The exchange then started trading Bitcoin options in early 2020. Both products have received notable volume and attention numbers.