For the first time, CME Group’s futures market offers investors access to an instrument that allows them to bet on how much ETH might be worth in the future. The development comes at a significant inflection point for Ethereum, which continues its steady march towards $5K and beyond.
The first futures contract on Ethereum was introduced by the Chicago Mercantile Exchange. The introduction of a clear method to invest in Ether before it’s value reaches its peak will benefit investors who want to take advantage of volatility without having to purchase large amounts of cryptocurrency at once.The “ethereum futures chart” is a graph of the price of ether, and it shows that the price has been increasing rapidly for a while. It also shows that the price is at an all-time high.
The Chicago Mercantile Exchange (CME), one of the world’s largest derivatives markets, has added a new Ether (ETH)-based product to its cryptocurrency derivatives portfolio.
CME Group stated on Tuesday that it plans to create a 0.1 ETH micro Ether futures contract, providing institutional and individual traders with a new sort of Ether exposure.
The new product, which will be CME’s fourth crypto derivatives product, is anticipated to debut on December 6, 2021, subject regulatory clearance.
The announcement comes as Ether is nearing all-time highs, with the cryptocurrency hitting $4,460 on Friday, its highest historical price. According to statistics from cryptocurrency monitoring website CoinGecko, the second-largest cryptocurrency by market cap is trading at $4,438 at the time of writing.
The introduction of micro ETH futures, according to Tim McCourt, CME Group Global Head of Alternative Investment Products, intends to attract more participants to the market by allowing for smaller stakes.
“We have observed consistent rise in liquidity in these contracts, notably among institutional traders, since the debut of Ether futures in February,” McCourt said, adding that the price of ETH has “more than doubled” since these contracts were released.
“Micro Ether futures will provide traders even more flexibility and precision in how they trade Ether futures at CME Group in a transparent, regulated, and efficient way,” he said.
Related: Ethereum shills want $5K ETH, and derivatives data backs them up this time
Micro Ether futures will be added to CME Group’s burgeoning crypto derivatives product, which already includes Micro Bitcoin futures, which began trading in May 2021. The firm has exchanged over 2.7 million contracts so far, with each contract worth 0.1 BTC. CME released the first and first Bitcoin futures contract on December 17, 2017.
The CME introduced a new futures contract called the “ethereum futures contract” on December 18, 2017. The contract is based on the price of ethereum and will allow traders to speculate on the future price of ether.
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