CME introduces Ether/Bitcoin ratio features

Giovanni Vicioso, CME Group Global Head of Cryptocurrency Products, said:

Historically, ether and bitcoin have been highly correlated; however, as the two assets have grown over time, market dynamics may affect the performance of one more than the other, creating relative value trading opportunities.

With the addition of Ether/Bitcoin Ratio futures, investors will be able to capture ether and bitcoin exposure in a single trade, without needing to take a directional view. This new contract will help create opportunities for a broad array of clients looking to hedge positions or execute other trading strategies, all in an efficient, cost-effective manner.

The cash settlement for the Ether/Bitcoin Ratio futures will be determined based on the final settlement price of CME Group Ether futures divided by the final settlement price of corresponding CME Group Bitcoin futures. The new contract will adhere to the listing cycle identical to that of CME Group’s Bitcoin futures and Ether futures contracts.

CME noted in tis official statement that next month’s launch depends on regulatory review.

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