CME Group Boosts Institutional Crypto Adoption with Euro-Denominated Bitcoin, Ether Futures
Summary:
The upcoming launch of Euro-denominated Bitcoin and Ether futures products by CME Group aims to boost institutional cryptocurrency acceptance in Europe. This initiative has attracted the interest of assorted investors, thus fostering an anticipated growth in market participants. According to Giovanni Vicioso, executive director of equity and alternative products at CME Group, the new euro-based futures will virtually create a foreign exchange contract, increasing institutional interest. CME Group is set to launch these products on March 18th. The firm has also reported a near doubling of its average daily Bitcoin trading volume, suggesting a growing interest in euro-denominated cryptocurrencies.
The forthcoming introduction of Bitcoin and Ether futures products in Euro is set to enhance the acceptance of institutional cryptocurrency within the European market, according to Giovanni Vicioso, executive director of equity and alternative products at CME Group, during an exclusive Cointelegraph discussion. Referring to their existing array of US dollar-based products, Vicioso observed that they cater to a broad spectrum of investors such as traditional proprietary firms who also, he expects, will provide liquidity for the new euro-based commodities. Vicioso also reported that CME's imminent Euro-pegged futures have elicited interest from a variety of investors including macro hedge funds, small-scale asset managers, and long-term crypto backers.
CME, as the world's top derivatives market, operates across four exchanges and is planning to augment its current selection of cryptocurrency derivatives with the addition of Euro-pegged Micro Bitcoin and Micro Ether, scheduled for release on March 18th.
The unveiling of these Euro-pegged products will effectively result in a foreign exchange (FX) contract, Vicioso revealed to Cointelegraph, predicted to garner increased attention from market investors. By taking a position on the US dollar contract and hedging with the Euro version or vice versa, across Bitcoin and Ether, an investor can create an FX contract: buy one, sell the other.
Bitcoin-related Exchange-Traded Products (ETPs) have been generating substantial interest since the initial approval of spot Bitcoin Exchange-Traded Funds (ETFs) in the US on January 11th. The nine standalone Bitcoin ETFs, excluding the converted Grayscale Bitcoin Trust (GBTC) fund, recorded a combined daily volume of over $2 billion for two consecutive days, February 28 being the second. This surge of enthusiasm and subsequent regulatory approval for US Bitcoin ETFs has boosted institutional interest in Bitcoin, Vicioso notes.
He states, "Since September, we have seen a rise in Euro-denominated Bitcoin and ether volumes and we are also hearing of increased customer interest, predominantly in euro-denominated cryptocurrencies." The average daily trading volume of Bitcoin (BTC) for CME has almost doubled, increasing from around $1.6 billion a day in 2023 to more than $3 billion per day in 2024, as shared by Vicioso.
Bitcoin saw a slight drop of 0.62% in the 24 hours just before 1.15 pm UTC, with the trading price standing at $62,383. The pioneering cryptocurrency has demonstrated a weekly growth of 22.50%.
Published At
3/1/2024 4:33:53 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.