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CME Group to Offer Market Participants Ethereum Options 3 Days Ahead of Merger

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Three days before Ethereum’s transition from proof-of-work (PoW) to proof-of-stake (PoS), the world’s largest derivatives exchange by volume, CME Group, announced plans to list Ethereum options . As CME’s ether options product prepares for regulatory review, the company clarified that the options contract will be measured at 50 ether per contract, using the CME CF Ether-Dollar benchmark rate.

CME Group Reveals Launch of Ethereum Options

The Chicago Mercantile Exchange, otherwise known as CME Group, revealed the company’s intentions to list Ethereum options contracts three days before the merger on September 12, 2022. CME detailed that new Ether options join options company bitcoin (BTC) and micro-bitcoin and ether option contracts.

“These new contracts offer a futures contract on one ether, with a size of 50 ether per contract, and based on the CME CF Ether-Dollar benchmark rate, which serves as the daily reference rate of the price of ether in U.S. dollars,” the derivatives market said Thursday. CME’s global head of equity and FX products, Tim McCourt, noted on Thursday that the new ether options contracts add to the company’s existing suite of crypto derivatives.

“The launch of these new options contracts builds on the significant growth and deep liquidity we have seen in our existing Ether futures contracts, which have traded over 1.8 million contracts to date,” said McCourt said in a statement. The CME executive added:

As we approach the highly anticipated Ethereum merger next month, we continue to see market participants look to CME Group to manage Ether price risk. Our new ether options will provide a wide range of clients with greater flexibility and precision in managing their ether exposure ahead of evolving market events.

CME Group will offer market participants Ethereum options 3 days before the merger
Current Ethereum (ETH) options stats from The Block’s Crypto Data as of August 18, 2022.

CME Group will join a number of exchanges that already offer Ethereum options contracts, including Deribit, Okex, Bit.com and Huobi. In July, there was $11.38 billion in ether options volume, with Deribit commanding $10.86 billion on the four exchanges that list ETH options. Ether options open interest market share is also dominated by Deribit, compared to open interest figures associated with Huobi, Okex and Bit.com.

In terms of bitcoin options, Deribit also outperforms CME as CME Group is second in bitcoin options open interest with $441 million recorded on August 17. Similarly, CME is third in terms of bitcoin options volume while Deribit takes the lead. Okex manages to capture a bit more volume when it comes to bitcoin options.

With the new CME Ether Options, TP ICAP Digital Assets and Akuna Capital are supporting the deployment of CME Ether Options. TP ICAP Digital Assets is delighted to support CME Group in the rollout of its full Ether options contract,” TP ICAP Head of Brokerage Sam Newman said during the announcement. “This larger Ether option, together with the already popular Micro Ether option, was eagerly awaited by TP ICAP customers.”

Keywords in this story

Akuna Capital, Bit.com, CME, CME Ether Options, CME Group, deribit, Deribit Bitcoin Options, ETH, Ethereum, Ethereum Merge, ethereum options, Ethereum options contracts, Huobi, micro ether options, Okex, Open Interest, PoS , PoW , Merger, Tim McCourt, TP ICAP Digital Assets, volume

What do you think of CME Group offering Ethereum options on September 12, 2022? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is the News Manager at Bitcoin.com News and a fintech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written over 5,700 articles for Bitcoin.com News about disruptive protocols emerging today.




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