CME Group Expands Bitcoin and Ethereum Derivatives Products

• CME Group is set to expand its Bitcoin and Ethereum product lineup from May 22 – subject to regulatory approval.
• The world’s largest derivatives exchange said its new offerings would introduce shorter-term cryptocurrency options.
• CME Group’s Q1 2023 average notional daily volume for both cryptocurrencies exceeded $3 billion.

Options Available

CME Group will offer 14 new derivatives options for greater flexibility and risk management – subject to regulatory approval. These include ten new weekly options representing contracts expiring Monday through Friday for both Bitcoin (BTC) and Ethereum (ETH). Additionally, four additional micro contracts for BTC and ETH will be offered for Tuesday and Thursday expiry.

Demand on the Rise

According to Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group, the new contracts give traders “greater precision and versatility in managing short-term bitcoin and ether price risk.” This demand has been demonstrated by CME Group’s Q1 2023 average notional daily volume exceeding $3 billion – denoting an uptick in demand for its cryptocurrency derivatives products.

Regulatory Approval Needed

The expansion of CME Group’s cryptocurrency product offerings is subject to regulatory approval, which may take some time before being approved or denied. However, if approved, this could open up more opportunities to traders looking to manage their exposure when trading digital assets.

Conclusion

CME Group is taking steps towards expanding its offering of Bitcoin and Ethereum derivative products in order to provide traders with a wider range of optionality when it comes to managing their exposure when trading digital assets. This expansion is subject to regulatory approval but could help drive increased demand in the crypto markets if given the green light.