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Eurex launches ether derivatives – Fintech Schweiz Digital Finance News
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Eurex expands its crypto derivatives portfolio with the launch of FTSE Ethereum Index Futures and Options starting August 12, 2024.
Following the launch of FTSE Bitcoin Index Futures and Options in 2023, this represents another important milestone in Eurex’s ambition to offer secure access to cryptocurrencies in a regulated market environment.
Ethereum is the second largest cryptocurrency with a market capitalization of approximately USD 400 billion. There is significant demand for trading and hedging from institutional and professional clients, as reflected in record trading volumes in derivatives and other investment products.
The new options and futures are quoted in EUR and USD, with the respective FTSE Ethereum index as the underlying. The contract size is equivalent to 10 Ether (approximately 35,000 USD). Both contracts are cash settled and expire on the last Friday of the month. In addition to monthly and quarterly expirations, weekly options contracts will also be available.
The FTSE Ethereum Index was developed by FTSE Russell together with Digital Asset Research (DAR). It captures data from assets and exchanges verified to meet EU benchmarks. The final settlement rate of new Eurex contracts is determined as the volume-weighted average of the price of the FTSE DAR digital asset over a period of 15 minutes prior to the set time. Liquidity will be supported by orderbooks and over-the-counter liquidity providers.
Eurex had previously launched FTSE Bitcoin Index futures in April 2023. Since the launch, over 100,000 contracts have been traded, equivalent to over USD 3.5 billion notional. The crypto product offering was expanded with options on Bitcoin Index Futures in October 2023, to allow investors to hedge their Bitcoin exposure and express a more sophisticated market view with various trading strategies (e.g. straddles, put/call spreads, etc.).
Randolf Roth, Member of the Executive Board of Eurex:
“We look forward to expanding our crypto derivatives offering together with FTSE Russell and Digital Asset Research for our clients. As one of the world’s leading CCPs, Eurex offers trading on a regulated exchange and is therefore the right partner to enter the crypto space for institutional clients.”
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