The Chicago Mercantile Exchange (CME) has announced the launch of an Ethereum futures market, signaling institutional interest for ETH.
Big News for Ethereum Fans
While the cryptocurrency market is busy celebrating Bitcoin’s breakout above $20,000, the Chicago Mercantile Exchange (CME) announced more bullish news for ETH fans.
CME, the largest futures exchange in the world, will launch an Ethereum futures product alongside its existing Bitcoin product on Feb. 8, 2021.
The Ethereum futures will be cash-settled and based on CME’s CF Ether-Dollar Reference Rate. One contract on CME will represent 50 ETH tokens.
The price of ETH surged by 4.3% to a peak of $626 after media outlet The Block first broke the news. Bitcoin’s breakout above $20,000 has further bolstered ETH’s price action.
CME’s announcement confirms ETH’s status as a commodity or currency like Bitcoin. Further, it also signals an institutional demand for trading the number two digital asset.