As the Ethereum Merge approaches, CME Group, the world’s top derivatives marketplace announces the launch of options on the Ether future.
Per the statement of Tim McCourt, the Global Head of Equity and FX Products, CME Group, as Market participants long for the upcoming merge, a potentially game-changing update of one of the largest cryptocurrency networks, interest in Ether derivatives is surging,”
Also, the Head of Relationship Management for DRW, Rob Strebel, stated that the options are an important part of the trading strategy deployed by Cumberland’s institutional counterparties, whether that’s to hedge risk or gain exposure to the asset class without having it on their balance sheets.
He also said:
“CME Group has proven to trade and clearing infrastructure backing the product and we’re excited to provide liquidity on day one. As ether transitions through the anticipated merge this week, we expect we’ll continue to see strong demand for this Ether options contract.”
Leon Marshall who is the Global Head of State at Genesis commented on the new launch saying; “Genesis is proud to consistently provide day-one support of CME Group’s ever-expanding suite of crypto derivatives and offer the newest derivatives products to our institutional clients,”
He further said. “The launch of the new Ether options contract ahead of the highly anticipated Ethereum Merge provides our clients with greater flexibility to trade and hedge their Ether price risk.”
As stated in the blog post, These new contracts deliver one Ether future, sized at 50 ether per contract, and based on the CME CF Ether-Dollar Reference Rate, which serves as a once-a-day reference rate of the U.S. dollar price of ether.
As previously reported that the merge is happening this week with many expectations that the merge will cause a spike in the price of Ethereum.
However, the idea of merging is to transform the current proof-of-work into Proof-of-Stake as the former consumes a lot of energy which could be somehow hazardous to nature.
Also, the developers have once corrected the misconception about the upcoming merge, saying it will not bring a reduced gas fee or noticeably faster transactions.