CME Group Announces Launch of Ether/Bitcoin Ratio Futures
CME Group recently announced the launch of Ether/Bitcoin Ratio futures, which will be available starting July 31. This new offering is a response to the increased correlation between Bitcoin and Ether, the two largest cryptocurrencies. The Ether/Bitcoin Ratio futures will allow market participants to execute a relative value trade between Ether and Bitcoin futures in a single transaction, providing investors with cryptocurrency exposure without needing to take a directional view.
Key Points:
– The Ether/Bitcoin Ratio futures will be traded on the CME Globex platform under the ticker EBR.
– The ratio is calculated by dividing the Ether futures price by the Bitcoin futures price.
– The final settlement price for EBR is determined by dividing the Ether futures Final Settlement Price by the Bitcoin futures Final Settlement Price.
– The ratio will always be positive and available across all listed contract months.
– The launch of the Ether/Bitcoin Ratio futures is pending regulatory review.
This new offering aims to enhance market efficiency by eliminating price slippage and increasing matching opportunities. Once approved, it will provide traders with a new tool to capitalize on the market correlations between Bitcoin and Ether.
Hot Take:
The launch of Ether/Bitcoin Ratio futures by CME Group is an exciting development in the cryptocurrency market. It offers traders a unique opportunity to trade relative value between Ether and Bitcoin futures without taking a directional view. This new tool has the potential to increase market efficiency and provide investors with more options for cryptocurrency exposure. As the regulatory review process progresses, it will be interesting to see how this new offering impacts the market and if it becomes a popular choice among traders.
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