Digital Assets: Ether Options To Debut On CME September 12

August 18, 2022 | Digital Assets, Latest News, News

The launch comes ahead of the much-hyped Ethereum Merge next month.

Derivatives exchange CME Group (NASDAQ: CME) intends to launch options on its ether future contracts on September 12. The new option contracts are based on 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 of the U.S. dollar price of Ether. (CISION PR NEWSWIRE)

“As we approach the highly anticipated Ethereum Merge next month, we continue to see market participants turn to CME Group to manage ether price risk,” said Tim McCourt, Global Head of Equity and FX Products, CME Group. “Our new Ether options will offer a wide array of clients greater flexibility and added precision to manage their ether exposure ahead of market moving events.”

“This larger-sized Ether option, in tandem with the already popular Micro Ether option, has been eagerly awaited by TP ICAP’s customers,” said Sam Newman, Digital Assets Head of Brokering at TP ICAP. “With the upcoming Ethereum protocol merge, we expect this new contract to see significant interest from both our traditional customers as well as crypto native clients.”

The new ether option contracts join CME Group’s existing suite of cryptocurrency options contracts, which include bitcoin options, as well as micro-sized bitcoin and ether options.

The Ethereum Merge

The Ethereum Merge is a long-pending upgrade to the ethereum blockchain network that would reduce its electricity requirements by over 99%.

In the Merge, ethereum will adopt a system known as proof of stake, in place of a highly energy intensive system known as proof of work that involved highly complex mathematical crypto puzzles.

In proof of stake, these puzzles will no longer be required, hence slashing computational resources and the energy used to run them.

On Merge day, the data held on ethereum’s mainnet would be transferred to the proof of stake beacon chain, which will then become the prime blockchain on ethereum’s network.

Related Story: CME Announces Trading In Micro Ether Futures Effective December 6

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Digital Assets: Mike Novogratz Hits Out At Sam Bankman-Fried, Calls For His Prosecution
December 2, 2022     Digital Assets, News

Mike Novogratz, the billionaire CEO of Galaxy Digital (TSE: GLXY), was unequivocally critical about Sam Bankman-Fried’s virtual New York Times (NYT) Dealbook Summit interview. “I’m hoping that the authorities get…
FinTech: Monzo To Turn Profitable In 2023, Says CEO
December 2, 2022     FinTech, News

“We will be profitable in the next financial year,” TS Anil said at the summit on Thursday, though Monzo reported pre-tax losses of £119mn for the 12 months to the…
Artificial Intelligence: OpenAI Launches ChatGPT, A New Conversational AI System
December 2, 2022     Artificial Intelligence, News

OpenAI has unveiled ChatGPT, a new AI system that interacts in a conversational way. As part of a dialogue format, ChatGPT answers followup questions, admits its mistakes, challenges incorrect premises,…
Artificial Intelligence: Monarch’s Electric, Driver-Optional, Smart Tractor Now In Commercial Production

Monarch Tractor has rolled out the first production model of the MK-V tractor that combines electrification, automation, and data analysis to help farmers reduce their carbon footprint, improve field safety,…