Home Ethereum CME Group plans to launch options on ETH futures ahead of merger

CME Group plans to launch options on ETH futures ahead of merger

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CME Group plans to launch options on ETH futures ahead of merger

Leading derivatives market Chicago Mercantile Exchange Group intends to launch options trading for its Ether (ETH) forward products.

In an announcement Thursday, CME Group said that subject to regulatory review, it plans to launch options contracts for its Ether futures contracts, in the amount of 50 ETH per contract. Futures options, which are expected to begin trading on September 12, will be follow the launch of the company Micro-sized bitcoin (BTC) and Ether options in March 2022, BTC options trading products in January 2020, and BTC futures in December 2017.

CME Group’s global head of equity and FX products, Tim McCourt, cited the Ethereum blockchain’s upcoming transition to proof-of-stake — also known as a merger — when announcing the ETH futures product. McCourt said the group has seen an increase in trading volume and open interest in ETH futures and micro-sized ETH futures options, possibly in anticipation of the merger.

“We have […] saw increased activity in our September and December Micro Ether options, which could also suggest participants are hedging risk around the proposed merger date,” McCourt said in a statement shared with Cointelegraph. “Seventy-eight percent of Micro Ether options open interest is for September and December contracts.”

CME Group reported a 7% increase in average daily ETH futures trading volume from June to July and a 41% increase in the same micro-ETH futures volume. Trading activity in ETH and cryptocurrency-related investment vehicles could experience significant volume ahead of the merger, which the main developers expect it to happen September 15.

Related: CME Group plans to launch euro-denominated Bitcoin and Ether futures

According to data from Cointelegraph Markets Pro, the ETH price is $1,863 at press time, having risen 2% in the past 24 hours. The token reached a record price around $4,800 in November 2021.