CME Group goes live with event contracts on Bitcoin futures
“These new contracts will offer an innovative, less expensive way for investors to trade their views on the up or down price movements of bitcoin.”
CME Group has gone live with event contracts on Bitcoin futures in a move that further expands the derivatives trading giant’s digital asset offering.
Tim McCourt, Global Head of Equity and FX Products at CME Group, said: “Our new event contracts on Bitcoin futures provide a limited risk, highly transparent way for a wide range of investors to access the bitcoin market via a fully regulated exchange .
“These cash-settled daily expiration contracts will further complement our existing suite of 10 event contracts linked to our benchmark futures markets, which have traded more than 550,000 contracts to date. Additionally, these new contracts will offer an innovative, lower-cost way for investors to trade their views on the upward or downward price movements of bitcoin.”
CME’s digital asset offering includes EUR-denominated BTC and ETH futures
The company recently rolled out euro-dominated bitcoin (BTC) and ether (ETH) futures contracts, the first of its kind crypto derivative product on a regulated exchange.
The new contract size for bitcoin futures is equivalent to 5 BTC while the ether product is sized at 50 ether per contract. Both contracts are cash-settled, similar to the exchange’s existing dollar-denominated crypto futures, and will be priced at the CME CF Bitcoin-Euro Reference Rate and the CME CF Ether-Euro Reference Rate.
These indices were developed in collaboration with Crypto Facilities to serve as a once-daily reference rate for the euro-denominated price of bitcoin and ether. The index refers to price data using transactions and order book activity from several cryptocurrency exchanges.
In October 2022, CME Group tapped CryptoQuant as the official on-chain data provider for CME Group’s Datamine, an on-demand platform that allows traditional financial institutions to access detailed historical data. Traditional financial institutions and hedge funds can obtain digital asset data from CryptoQuant via the CME Group Datamine service.
CryptoQuant, which provides on-chain data for Bitcoin such as exchange flows, mining flows, long-term holders and others, is used by big names in the media (Forbes, Bloomberg and CNBC) and has also contributed to Valkyrie’s Bitcoin Futures ETF approval in the US by developing an overview over the Bitcoin market, contribute.
CME Group offers event contracts on a growing number of its benchmark futures markets, including gold, silver, copper, crude oil, natural gas, E-mini S&P 500, E-mini Nasdaq-100, E-mini Dow Jones Industrial Average, E-mini Russell 2000 and Euro-US dollar currency futures. With a value of up to $20 per contract, these daily options on futures allow participants to know their maximum profit or loss when entering a trade.
