Ethereum futures in US one step closer as CME deal is struck

Ethereum futures in US one step closer as CME deal is struck

Chicago Mercantile Exchange & CME Group Inc(Chicago Board of Trade) published a partnership with Crypto Facilities Ltd to register the price of ether in real-time dollars. Data from dominant cryptocurrency exchanges Bitstamp and Kraken will be used to define the CME CF reference rate. This could be a hint of things to grow for the second most popular crypto in the world, including potential US futures.   

“CME Group’s experience and expertise in bringing the Bitcoin Reference Rate and Real-Time Index to market,” Chicago Merc’s website pithily said, “has allowed us to launch an Ether-Dollar Reference Rate and Real-Time Index […] and the CME CF Ether-Dollar rates will produce a standardized source price and spot price index to bring certainty to any trading strategy. Major cryptocurrency exchanges Bitstamp and Kraken implement the pricing data to bring our reliable rate to the market.”

In the final quarter of last year, to considerable fanfare and hype, CME, onward with crosstown rival Cboe, organized a first of its kind: crypto futures. The attempt in running bitcoin core (BTC) in more mainstream financial contexts has been mixed. Some investigators even consider futures were a significant drag on digital asset prices due to enabling speculators to short BTC.

CME’s Tim McCourt told, “The Ether Reference Rate and Real-Time Index are produced to meet the evolving demands of this marketplace. Providing price transparency and a reliable price reference source is an important development for users of Ethereum.”

Aiming for Institutional Investors

CME is amongst the most trusted derivatives market producers in the world, as is a well-known player. Crypto Facilities Ltd is a crypto trading platform. The two have drawn to offer the CME CF Ether-Dollar Reference Rate (Ether Reference Rate) and Ether Real-Time Index. Crypto Facilities will rely on Kraken and Bitstamp order books as important references. It hopes to add something like a daily benchmark in US fiat, real-time. A rollout is needed by CME Group and Crypto Facilities’ several websites May 14, but prescribed CME market data platform administration won’t begin continuously June 4th of this year.

London-based Crypto Facilities’ Timo Schlaefer noted, “Ether, the 2nd largest cryptocurrency, encountered incredible adoption and growth in 2017, developing into the leading blockchain for smart contracts. We are thrilled to be offering to the strong community that has developed throughout the Ethereum network by providing a reliable source rate and real-time Ether-Dollar price.”

Earlier this week, Crypto Facilities reported its other partnership with Chicago-based Akuna Capital and London-based market maker B2C2 to make ethereum futures contracts. The triumvirate believes it can bring liquidity to ethereum futures. Directed at institutional investors, so futures would allow long and short positions were externally dirtying hands (having to hold the actual coin). 

Akuna’s Toby Allen ordered his company is “looking forward to seeing this much-needed product fill a break in the market. The extension of a futures product enables crypto traders to take both long and short forms in ETH and is another enormous leap in the development of the crypto asset class.”

#CME Deal #Ethereum future


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