CME Group Launches Ether Trading Options Ahead of the Merge

American-based leading derivatives exchange Chicago Mercantile Exchange (CME) Group announced Monday the addition of Ethereum (Ether) trading options in its futures marketplace, a few days before the anticipated Ethereum Merge.

CME Rolls out Ether Trading Options

The company noted that the launch is due to increased interest in Ethereum as investors await the network’s transition to a Proof-of-Stakes (PoS) chain later this month. 

“As market participants anticipate the upcoming Ethereum Merge, a potentially game-changing update for one of the largest cryptocurrency networks, interest in Ether derivatives is surging,” said Tim McCourt, the global head of equity and FX products at CME Group.

The derivatives marketplace said last month that the new Ether futures product is planned to “deliver one ether futures, sized at 50 Ether per contract, and based on the CME CF Ether-Dollar Reference Rate, which serves as a once-a-day reference rate for the U.S. dollar price of Ether.”

Tim McCourt also stated that the latest addition of Ethereum options offers traders essential tools to access the new Ethereum products. The contracts also provide increased flexibility for users to manage their exposure to Ether pending the Merge, which is highly anticipated to bring more volatility to the crypto market.

McCourt further noted that the products are designed to complement existing Ether futures contracts, which have recorded a massive uptrend (43%) in their average daily transaction volume for more than 12 months. The company added support for Ether futures in February 2021, Coinfomania reported.

Hedge Against Inflation

As one of the leading global derivative exchanges, the CME Group started offering crypto-related futures derivative products in early 2017 with Bitcoin (BTC) and other virtual assets, which allows traders to buy and sell their purchases at a particular date. 

Speaking on the latest development, Leon Marshall, the global head of sales at Genesis, a digital asset brokerage company, believes that the new futures contracts will benefit its institutional customers and also serve as a hedge against inflation.

“Genesis is proud to consistently provide day-one support to CME Group’s ever-expanding suite of crypto derivatives and offer the newest derivatives products to our institutional clients. The launch of the new Ether options contract ahead of the highly anticipated Ethereum Merge provides our clients with greater flexibility to trade and hedge their Ether price risk,” he said.