Chicago-based derivatives change CME Group mentioned that it plans to gauge consumer passion for an ethereum futures product now that it has introduced a worth index and benchmark for ether, the sector’s second-largest cryptocurrency.
Speaking with Bloomberg at the sidelines of an trade convention in New York, Tim McCourt, CME’s head of fairness merchandise, mentioned that the change operator will check the waters to peer if there may be sufficient call for to justify the introduction of an ethereum futures product, although the company does no longer but lately have plans to listing contracts that monitor the cost of ether.
“We’ll continue to gauge with them to ascertain the demand for futures,” he mentioned. “There are no plans at the exchange to launch one currently.”
As CCN reported, CME on Monday unveiled its new benchmark Ether Reference Rate and Ether Real Time Index, every of which gives audited pricing knowledge for ETH/USD buying and selling pairs. Data is aggregated from cryptocurrency exchanges Kraken and Bitstamp after which calculated via UK cryptocurrency derivatives change Crypto Facilities.
McCourt additional mentioned that CME has known a “clear demand” for physically-settled cryptocurrency futures. At provide, each CME and fellow Chicago change CBOE be offering futures contracts which are tied to the cost of bitcoin however are settled in money — no longer cryptocurrency — because of quite a lot of custodial and regulatory considerations. “There’s a clear demand for it in the market; people would welcome that innovation,” he mentioned, including:
“With physical delivery you have to figure out what to do with the Bitcoin; are you going the custody route, are you going the private key route, those are very interesting questions and we’re looking forward to some of those solutions availing themselves in the market, but right now the community is best served by a financial contract.”
Elsewhere within the interview, McCourt hit again at claims that CME’s bitcoin futures product release precipitated the hot endure marketplace. Noting that bitcoin peaked at an all-time prime on Dec. 17 — the similar day that CME indexed bitcoin futures — researchers at the USA Federal Reserve argued that the endure marketplace used to be the results of investors taking on brief positions in futures.
McCourt, although, mentioned that even supposing futures quantity has grown significantly for the reason that markets opened, it used to be a ways too small in December to be answerable for a full-fledged selloff.
“If you look at the notional that trades, it’s tough to say that futures were responsible for that selloff given the relatively small percentage contribution to Bitcoin trading,” he mentioned.
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