CME Group intends to launch options on ETH futures

Major derivatives market Chicago Mercantile Exchange Group plans to launch options trading on Ether futures products.
In an announcement on Thursday, CME Group said it plans to launch options contracts for Ether (ETH) futures at 50 ETH per contract, subject to regulatory review. Expected to begin trading on September 12, futures options will follow the firm’s launch of micro-size Bitcoin (BTC) and Ether options in March 2022, BTC options trading products in January 2020, and a BTC futures contract in December 2017. .

Tim McCourt, head of global equity and FX products at CME Group, referred to the Ethereum blockchain’s transition to proof-of-stake – also known as Merge – when announcing its ETH futures product. McCourt said the group has observed an increase in trading volume and open interest for ETH futures and micro-size ETH futures options, possibly in anticipation of the Merger.

“We have […] McCourt said in a statement shared that increased activity was seen in our September and December Micro-Ether options, which may indicate that participants remain hedged around the proposed merger date.” “78% of the open interest rate on Micro Ether options are on September and December contracts.”

Looking for a new opportunity to add the flexibility of options to your cryptocurrency portfolio? Meet CME Group’s Ether options, launching Sept. 12. https://t.co/yHc3s6oL9h pic.twitter.com/wlKTGNyE5K

— CME Group (@CMEGroup) August 18, 2022

 CME Group reported a 7% increase in the average daily trading volume of ETH futures from June to July, and a 41% increase in micro ETH futures contracts of the same volume. Trading activity for ETH and cryptocurrency-linked investment vehicles could see significant volume ahead of the Merger, which core developers expect to happen on September 15.
According to data, the price of ETH is up 2% in the last 24 hours to $1,863 at the time of publication. The token reached an all-time high of around $4,800 in November 2021.