CME Group set to launch ETH to BTC ratio futures in July
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The Chicago Mercantile Exchange (CME) Group has announced its intention to launch Ether/Bitcoin ratio futures on July 31, pending regulatory approval.
CME Group revealed its plans for this new product on June 29, aiming to provide traders with a means to speculate on the relative price movement between the two popular cryptocurrencies.
The settlement for these futures contracts will be in cash and depend on the final prices of CME Group’s ether futures divided by its bitcoin futures. The Ether/Bitcoin Ratio futures listing cycle will follow the same pattern as CME Group’s existing bitcoin and ether futures contracts.
3For the uninitiated, Ratio futures contracts involve using the ratio between two commodities as the underlying asset. This type of contract enables traders to capitalize on the price differences between the two commodities.
Settlement is made in cash, based on the difference between the contract price and the spot price of the ratio at the time of settlement.
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Giovanni Vicioso, the global head of cryptocurrency products at CME Group, highlighted the potential for relative value trading opportunities between ether and bitcoin. Vicioso noted that while these two assets have historically shown a high correlation, their market dynamics may now differ, creating possibilities to profit from their performance variances.
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