CME Group reveals plans to introduce Ether options

The renowned derivatives exchange CME Group has revealed its plans to introduce Ethereum options contracts. The main driver behind the decision to finally introduce options has been the recent large volume of Ethereum futures traded on CME Group’s exchange. 

According to Tim McCourt, the company’s global head of equity and FX products, Ether futures have seen a 43% growth in average daily volume year over year. 

Notably, derivative instruments like options and futures offer traders an additional means of speculating on a specific asset. Options contracts perform the same function as futures contracts but do not compel the holder to buy or sell an asset on a specific date (just gives the option to do so).

McCourt went on to add:

“The launch of our new Ether options contracts is particularly well-timed to provide the crypto community with another important tool to gain access to and manage exposure to Ethereum.” 

According to reports, 28% of all trading for BTC and ETH futures contracts takes place in nations in Europe, the Middle East, and Africa. The CME group launched its first ETH futures product in February 2021 and its first BTC futures contract back in December 2017. Additionally, the company increased its offering in 2022 by adding micro BTC and ETH futures.

As one of the primary causes of such high demand, McCourt also pointed to the highly-anticipated Ethereum’s The Merge event. With the merging tentatively scheduled for September 14, the largest altcoin will witness one of its most eagerly-awaited updates since the network started.

CME Group dominance

The parent company of the Chicago Mercantile Exchange, CME Group, tapped Google in November last year under its efforts to develop its derivatives marketplace, as TheCoinRise reported.

The CME Group, one of the largest derivatives marketplace in the world, offers clients the ability to trade futures, options, cash, and OTC markets as well as to optimize portfolios and analyze data. This gives market participants all over the world the ability to effectively manage risk and capitalize on opportunities.