Categories: Ethereum

CME Group Says It’s Gauging Client Interest

Join our group of 10 000 merchants on CME Group lately launched an ether worth benchmark, broadly seen as step one in finally making a futures product.

McCourt additional mentioned that CME has recognized a “clear demand” for physically-settled cryptocurrency futures. At current, each CME and fellow Chicago trade CBOE supply futures contracts which might be tied to the value of bitcoin however are settled in money — not cryptocurrency — on account of varied custodial and regulatory issues. “There’s a clear demand for it in the market; people would welcome that innovation,” he mentioned, including:

“With bodily supply you need to determine what to do with the Bitcoin; are you going the custody route, are you going the personal key route, these are very attention-grabbing questions and we’re wanting ahead to a few of these options availing themselves out there, however proper now the group is finest served by a monetary contract.”

Elsewhere within the interview, McCourt hit again at claims that CME’s bitcoin futures product launch triggered the current bear market. Noting that bitcoin peaked at an all-time excessive on Dec. 17 — the identical day that CME listed bitcoin futures — researchers on the US Federal Reserve argued that the bear market was the results of merchants taking over brief positions in futures.

McCourt, although, mentioned that though futures quantity has grown significantly for the reason that markets opened, it was far too small in December to be chargeable for a full-fledged selloff.

“If you have a look at the notional that trades, it’s powerful to say that futures have been chargeable for that selloff given the comparatively small share contribution to Bitcoin buying and selling,” he mentioned.

Images from Shutterstock.

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