Chicago Mercantile Exchange (CME) announced its plans to roll out a futures contract on Ethereum (ETH) by February next year.
According to the announcement, Ethereum futures will be listed on February 8, which is more than 3 years after Bitcoin Futures was listed.
There will be 50 units of Ether for each contract, with the trading period for the derivative products taking place from 5 PM Sunday to 4 PM (CT) Friday. The new contract will be settled in cash and will use the CME CF Ether-Dollar Reference Rate.
Building on Bitcoin futures success
CME exchange pointed out that the firm is adding Ethereum futures, the second most valuable cryptocurrency, to build on the success recorded on Bitcoin futures and options.
Futures allow traders and investors to buy and sell specific assets at a predetermined quantity and a particular price at a stated future date.
CME Group is the world’s leading derivatives market, as it enables clients to analyze data, trade options, futures, and optimize the portfolio.
It empowers users all over the world to seek new opportunities and manage risks effectively by allowing them to diversify their portfolios. The exchange provides a broader coverage of global benchmark products across several market classes on foreign exchange, indexes, equity, agricultural products, and energy. CME Group also offers trade processing services via Traiana and optimization and reconciliation services through TriOptima.
Ethereum price crosses $600
Cryptocurrencies have taken the financial market by storm as the majority of them have risen in price. But it seems the market has slowed down a bit, although Ethereum is still surging and has crossed the $600 benchmark.
Many market observers believe the latest rally by the cryptocurrency is a result of the latest news coming from CME about ETH futures.
At the time of writing, Ethereum is trading at $617, which is an increase of about 5.5% since the ETH futures announcement was made.
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