CME to Launch Euro-Denominated Crypto Futures

CME Group is extending its crypto futures offering with the launch, subject to regulatory approval, or euro-denominated Bitcoin and Ether futures on 29 August.

Designed to match their dollar-denominated counterparts, Bitcoin Euro and Ether Euro futures contracts will be sized at five bitcoin and 50 ether per contract, and will be cash-settled, based on the CME CF Bitcoin-Euro Reference Rate and CME CF Ether-Euro Reference Rate, which serve as once-a-day reference rates of the euro-denominated price of Bitcoin and Ether.

“Ongoing uncertainty in cryptocurrency markets, along with the robust growth and deep liquidity of our existing Bitcoin and Ether futures, is creating increased demand for risk management solutions by institutional investors outside the US,” says Tim McCourt, global head of equity and FX products at CME. “Our Bitcoin Euro and Ether Euro futures contracts will provide clients with more precise tools to trade and hedge exposure to the two largest cryptocurrencies by market cap. Euro-denominated cryptocurrencies are the second highest traded fiat behind the US dollar. Year-to-date, the EMEA region represents 28% of total Bitcoin and Ether futures contracts traded, up more than 5% versus 2021.”

Edmond Goh, head of trading at B2C2, adds, “The launch of euro-denominated Bitcoin and Ether futures from CME Group will help meet the growing demand for regulated and robust, non-USD crypto derivatives. As the premier OTC counterparty, we look forward to continuing to provide liquid markets in this important asset class.”

The launch will also be supported by inter-dealer broker TP-Icap’s digital assets business. Sam Newman, digital assets head of brokering at the firm says, “Our Digital Assets business has been operational and brokering CME Group cryptoassets since the start of 2020, originally in London, followed by expansion to the US in 2021 and, most recently, in APAC via Hong Kong and Singapore. Interest in cryptoassets has seen huge growth, and these new euro-denominated futures contracts will help further expand the accessibility and utility of cryptoasset derivatives, particularly within Europe.”