Bitcoin investors are euro-weighted on a soon-regulated exchange. Bitcoin (BTC) and Ethereum (ETH) will have the option to trade on futures contracts.
US Chicago Mercantile Exchange (CME) to Offer Bitcoin and Ethereum Futures Contracts in Euros
Derivatives giant Chicago Mercantile Exchange (CME) announced on Thursday that it will launch Bitcoin euro and Ethereum euro futures contracts on August 29, pending regulatory approval.
The contract size for Bitcoin futures will be 5 BTC, while the ETH contract will be 50 ETH. Both contracts will be cash-settled based on the CME CF Bitcoin-Euro Reference Rate and the CME CF Ether-Euro Reference Rate.
According to the World Economic Forum, the euro, the common currency of 19 of the 27 member states of the European Union, is the second most demanded currency in global foreign exchange reserves, The launch of euro-denominated Bitcoin and ETH futures contracts could accelerate the continued institutionalization of the crypto market.
In addition, the daily turnover in euro-dollar parity is the highest in the global foreign exchange market, with an average daily volume of 6.6 trillion dollars.
“BTC and ETH Futures Market Growing in Non-US Regions”
Tim McCourt, global head of equity and FX products at CME Group, said in a press release:
“Our Bitcoin-euro and Ethereum-euro futures contracts provide our clients with these two largest by market capitalization. to cryptocurrency will expose them.
Euro-denominated cryptocurrencies are the second most traded fiat currencies after the US dollar. Year-to-date, the Europe, Middle East and Africa region represents 28% of total Bitcoin and Ethereum futures contracts traded, an increase of more than 5% compared to 2021.”
The euro followed a very volatile course this year and fell to the lowest parity in almost the last 20 years with the dollar last month.
CME listed a dollar-denominated Bitcoin futures contract in December 2017 and a dollar-denominated Ethereum futures contract in February 2021.
*Not investment advice.