Eurex Adds Ether Futures and Options

Eurex is set to expand its crypto derivatives offering with the launch of FTSE Ethereum Index futures and options in August, the new products join similar contracts for bitcoin.

Observing that ethereum is the second largest cryptocurrency with a market capitalisation of approximately $400 billion, Eurex says there is “significant” trading and hedging demand from institutional and professional customers, as reflected in record trading volumes in derivatives and other investment products.

The new options and futures will be listed in EUR and USD, with the respective FTSE Ethereum Index as the underlying. The contract size is equivalent to 10 ether and both contracts are cash settled and expire on the last Friday of the month. In addition to monthly and quarterly maturities, weekly expiring contracts for options will also be available, Eurex says.

The FTSE Ethereum Index was developed by FTSE Russell together with Digital Asset Research (DAR). It captures data from vetted assets and exchanges to meet EU benchmarks. The final settlement rate of the new contracts will be determined as the volume time-weighted average of the FTSE DAR Digital Asset Price over a 15-minute period prior to the fixing time. Liquidity will be supported by orderbook and over-the-counter liquidity providers.

Eurex says over 100,000 contracts, equivalent to over $3.5 billion notional, have been traded since the launch in its bitcoin contracts. “We look forward to expanding our offering in crypto derivatives together with FTSE Russell and Digital Asset Research for our clients,” says Randolf Roth, member of the Eurex executive board. “As one of the world’s leading CCPs, Eurex offers trading on a regulated exchange and is therefore the right partner to enter the crypto space for institutional clients.”

Kristen Mierzwa, head of digital assets at FTSE Russell, an LSEG business, adds, “In association with the experts at Digital Asset Research we have established an industry standard for assessing underlying digital asset and exchange inclusion. We have applied this vetting methodology to offer indices reflective of the real investable market.”