07-01-2023, 05:06 AM
CME to Launch Crypto Ratio Futures as Cboe Eyes Fidelity’s Spot BTC ETF
<p class="MsoNormal">Chicago
Mercantile Exchange (CME), one of the world’s largest derivatives marketplaces,
plans to launch
crypto Ether (ETH)/Bitcoin
(BTC) ratio
futures on July 31, 2023. This is even as Cboe BZX Exchange, one of four
<a href="https://www.financemagnates.com/terms/e/equities/" class="terms__main-term" id="d6e02698-4c6b-44dd-ab57-9ff12763325c">equities</a> exchanges operated by Cboe Global Markets, approached the US
securities watchdog on Thursday, requesting permission to list the Wise Origin Bitcoin
Trust, according to Reuters. </p><p class="MsoNormal">Top asset manager Fidelity <a href="https://www.financemagnates.com/cryptocurrency/news/financial-giant-fidelity-plans-to-launch-a-bitcoin-etf/" target="_blank" rel="follow">filed the Trust in March 2021</a> with the Securities
and Exchange Commission (SEC), seeking to create an exchange-traded fund (ETC) that tracked
the price performance of BTC, <a href="https://www.financemagnates.com/" target="_blank" rel="follow">Finance Magnates</a> reported. However, the SEC rejected the financial services giant's proposal
for the spot BTC
ETF in January last year.</p><p class="MsoNormal">The ‘BlackRock’
Fever</p><p class="MsoNormal">Cboe’s application to list Fidelity’s fund comes on the heels of <a href="https://www.financemagnates.com/cryptocurrency/ark-invest-joins-blackrock-and-fidelity-in-race-for-bitcoin-etf/" target="_blank" rel="follow">resurging
interest</a> in cryptocurrency exposure among institutional investors. Since the proposal by <a href="https://www.financemagnates.com/cryptocurrency/blackrock-seeks-approval-for-a-spot-bitcoin-etf-in-the-us/" target="_blank" rel="follow">BlackRock, a fund management firm</a> to the SEC two weeks ago, ARK Invest, Fidelity, Invesco and WisdomTree
have also sought similar approval. </p><p class="MsoNormal">Surprisingly, the wave of new
applications trails the SEC’s recent crackdown on ‘unregistered’ crypto
exchanges in the United States, including <a href="https://www.financemagnates.com/cryptocurrency/binance-loses-major-eur-banking-partner-amid-regulatory-concerns/" target="_blank" rel="follow">Binance</a> and <a href="https://www.financemagnates.com/cryptocurrency/coinbase-dismisses-sec-allegations-claims-extraordinary-abuse-of-process/" target="_blank" rel="follow">Coinbase</a>. Experts believe that traditional investors
are trying to secure permission for their spot BTC ETF applications having seen Blackrock's success after being previously turned down. </p><p class="MsoNormal">CME Group
Expands Crypto Futures Offering</p><p class="MsoNormal">Meanwhile,
CME’s planned crypto ratio futures target BTC and ETH, the two largest
<a href="https://www.financemagnates.com/terms/c/cryptocurrencies/" class="terms__secondary-term" id="b091101e-6e02-4b36-aa0e-7c972dfdd6ed">cryptocurrencies</a> by market capitalization. Crypto ratio futures are a type of
derivative contract that enables traders to bet on the relative price movements
of two digital assets. These contracts are traded on
decentralized exchanges such as Binance Futures. </p><p class="MsoNormal">CME noted in the
statement that its launch of the contract next month is dependent on a regulatory review. It added that the crypto ratio futures will follow the same listing
cycle as its BTC/ETH futures contracts.</p><p class="MsoNormal">“The
Ether/Bitcoin Ratio futures will be cash-settled to the value of CME Group
Ether futures final settlement price, divided by the corresponding CME Group
Bitcoin futures final settlement price,” the derivatives exchange further elaborated. </p><p class="MsoNormal">Giovanni
Vicioso, the Global Head of Cryptocurrency Products at the CME Group, believes that the ratio futures contracts
will give investors the ability to “capture ether and bitcoin exposure in a
single trade without needing to take a directional view.”</p><p class="MsoNormal">“This new
contract will help create opportunities for a broad array of clients looking to
hedge positions or execute other trading strategies, all in an efficient,
cost-effective manner,” Vicioso added.</p><p class="MsoNormal">
AvaTrade's veteran joins GKFX; Nasdaq welcomes 60 IPOs; <a href="https://www.financemagnates.com/forex/news-nuggets-29-june-avatrades-veteran-joins-gkfx-nasdaq-welcomes-60-ipos/" target="_blank" rel="follow">read today's news nuggets</a>.</p>
This article was written by Solomon Oladipupo at www.financemagnates.com.
https://www.financemagnates.com//cryptoc...t-btc-etf/
<p class="MsoNormal">Chicago
Mercantile Exchange (CME), one of the world’s largest derivatives marketplaces,
plans to launch
crypto Ether (ETH)/Bitcoin
(BTC) ratio
futures on July 31, 2023. This is even as Cboe BZX Exchange, one of four
<a href="https://www.financemagnates.com/terms/e/equities/" class="terms__main-term" id="d6e02698-4c6b-44dd-ab57-9ff12763325c">equities</a> exchanges operated by Cboe Global Markets, approached the US
securities watchdog on Thursday, requesting permission to list the Wise Origin Bitcoin
Trust, according to Reuters. </p><p class="MsoNormal">Top asset manager Fidelity <a href="https://www.financemagnates.com/cryptocurrency/news/financial-giant-fidelity-plans-to-launch-a-bitcoin-etf/" target="_blank" rel="follow">filed the Trust in March 2021</a> with the Securities
and Exchange Commission (SEC), seeking to create an exchange-traded fund (ETC) that tracked
the price performance of BTC, <a href="https://www.financemagnates.com/" target="_blank" rel="follow">Finance Magnates</a> reported. However, the SEC rejected the financial services giant's proposal
for the spot BTC
ETF in January last year.</p><p class="MsoNormal">The ‘BlackRock’
Fever</p><p class="MsoNormal">Cboe’s application to list Fidelity’s fund comes on the heels of <a href="https://www.financemagnates.com/cryptocurrency/ark-invest-joins-blackrock-and-fidelity-in-race-for-bitcoin-etf/" target="_blank" rel="follow">resurging
interest</a> in cryptocurrency exposure among institutional investors. Since the proposal by <a href="https://www.financemagnates.com/cryptocurrency/blackrock-seeks-approval-for-a-spot-bitcoin-etf-in-the-us/" target="_blank" rel="follow">BlackRock, a fund management firm</a> to the SEC two weeks ago, ARK Invest, Fidelity, Invesco and WisdomTree
have also sought similar approval. </p><p class="MsoNormal">Surprisingly, the wave of new
applications trails the SEC’s recent crackdown on ‘unregistered’ crypto
exchanges in the United States, including <a href="https://www.financemagnates.com/cryptocurrency/binance-loses-major-eur-banking-partner-amid-regulatory-concerns/" target="_blank" rel="follow">Binance</a> and <a href="https://www.financemagnates.com/cryptocurrency/coinbase-dismisses-sec-allegations-claims-extraordinary-abuse-of-process/" target="_blank" rel="follow">Coinbase</a>. Experts believe that traditional investors
are trying to secure permission for their spot BTC ETF applications having seen Blackrock's success after being previously turned down. </p><p class="MsoNormal">CME Group
Expands Crypto Futures Offering</p><p class="MsoNormal">Meanwhile,
CME’s planned crypto ratio futures target BTC and ETH, the two largest
<a href="https://www.financemagnates.com/terms/c/cryptocurrencies/" class="terms__secondary-term" id="b091101e-6e02-4b36-aa0e-7c972dfdd6ed">cryptocurrencies</a> by market capitalization. Crypto ratio futures are a type of
derivative contract that enables traders to bet on the relative price movements
of two digital assets. These contracts are traded on
decentralized exchanges such as Binance Futures. </p><p class="MsoNormal">CME noted in the
statement that its launch of the contract next month is dependent on a regulatory review. It added that the crypto ratio futures will follow the same listing
cycle as its BTC/ETH futures contracts.</p><p class="MsoNormal">“The
Ether/Bitcoin Ratio futures will be cash-settled to the value of CME Group
Ether futures final settlement price, divided by the corresponding CME Group
Bitcoin futures final settlement price,” the derivatives exchange further elaborated. </p><p class="MsoNormal">Giovanni
Vicioso, the Global Head of Cryptocurrency Products at the CME Group, believes that the ratio futures contracts
will give investors the ability to “capture ether and bitcoin exposure in a
single trade without needing to take a directional view.”</p><p class="MsoNormal">“This new
contract will help create opportunities for a broad array of clients looking to
hedge positions or execute other trading strategies, all in an efficient,
cost-effective manner,” Vicioso added.</p><p class="MsoNormal">
AvaTrade's veteran joins GKFX; Nasdaq welcomes 60 IPOs; <a href="https://www.financemagnates.com/forex/news-nuggets-29-june-avatrades-veteran-joins-gkfx-nasdaq-welcomes-60-ipos/" target="_blank" rel="follow">read today's news nuggets</a>.</p>
This article was written by Solomon Oladipupo at www.financemagnates.com.
https://www.financemagnates.com//cryptoc...t-btc-etf/