CME Group Set to Expand ETH, BTC Derivatives Product Expiries

Upcoming offering to help clients better manage short-term bitcoin and ether price risk amid “heightened market volatility,” company executive says

article-image

Rabanser/Shutterstock modified by Blockworks

share

CME Group is expanding its crypto offerings after its bitcoin and ether derivative products notched a record daily average notional value of more than $3 billion during the year’s first quarter.

The derivatives marketplace is expanding expiries for options on bitcoin and ether futures contracts to be available Monday through Friday, CME revealed Monday. 

This means options on micro-sized bitcoin and ether futures, for example, are set to add Tuesday and Thursday expiries. 

Options have expiries, or expiration dates, at which time the contract becomes void. While CME already offers monthly and quarterly expiries across its bitcoin and ether derivatives, the product expansion is set to go into effect on May 22. 

Giovanni Vicioso, CME’s global head of crypto products, said in a statement that the product extension gives clients “greater precision and versatility in managing short-term bitcoin and ether price risk” amid what he called “heightened market volatility.”

The price of bitcoin (BTC) was roughly $29,400, as of 11:00 am ET Monday — up nearly 4% from a week ago, but down about 3% in the last 24 hours. Ether’s (ETH) price stood at $2,070 at that time — slightly down on the day, but a rise of more than 11% over the past seven days.  

Paul Eisma, head of options trading at institutional market maker XBTO, said in a statement that companies like his can now offer “precise liquidity” who trade and hedge crypto exposures throughout the business week.   

CME’s new plans come after a first quarter in which average daily open interest for its bitcoin futures and options reached an all-time high 24,094 contracts, the company said. 

CME Group began offering bitcoin futures in 2017 and went on to add ether futures in February 2021. The company later launched cash-settled micro bitcoin futures contracts and moved in November 2021 to add micro ether futures.

The company added ether options contracts in September 2022, and more than 4,600 such contracts have traded since then, according to the marketplace. 

More recently, the company said in February it was set to expand its event contracts —  $20-increment, daily expiring products — to include bitcoin futures.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

AERODROME TEMPLATE.png

Research

Aerodrome is a "MetaDEX" that combines elements of various DEX primitives such as Uniswap V2 and V3, Curve, Convex, and Votium. Since its launch on Base, it has become the largest protocol by TVL with more than $495M in value locked, doubling Uniswap's Base deployment.

article-image

Also, a look into how the highly-debated SAB 121 could end up shaking out for crypto custodians

article-image

Vance, an Ohio Republican, is largely seen as crypto-friendly

article-image

Plus, all the world is green as prices across the crypto space rally, with solana reaching a nearly two-week high

article-image

Investors add to crypto positions after “turnaround in sentiment due to lower-than-expected CPI,” CoinShares research head says

article-image

Plus, Ethereum is in the midst of a vibecession

article-image

Also, former Valkyrie CEO lands new leadership role at Canadian investment firm Cypherpunk Holdings