CME Group is making a big move into the cryptocurrency space by launching Ether/Bitcoin ratio futures this summer. This could help legitimize cryptocurrencies and attract more institutional investors.
CME Group is set to launch a new product called BTC/ETH ratio futures on July 31, 2023.
A financial product called a ratio futures contract enables traders to wager on the relative price movement of two different commodities. Based on the difference between the contract price and the ratio’s spot price at the time of settlement, the contract is settled in cash.
CME Group announced in April that it would be expanding its assortment of Bitcoin and Ethereum futures. To further legitimize the Bitcoin business, the corporation made a huge leap with its expansion in May.
The CME launched Bitcoin futures despite concerns that they would lead to increased market manipulation and volatility. However, over time, these futures have evolved into a vital instrument for institutional investors to access Bitcoin.
CME Group continued to expand its suite of crypto derivative products in 2021, launching Ether futures in February, Micro Bitcoin and Micro Ether futures later in the year, and Bitcoin Euro and Ether Euro futures in August. These products offer investors another way to gain exposure to digital assets with a smaller capital requirement.