Eurex adds Ether to crypto derivatives suite
18 July 2024 Germany
Image: Dennis/stock.adobe.com
Eurex has announced the launch of FTSE Ethereum Index Futures and Options on 12 August 2024.
Ethereum is the second largest cryptocurrency, with a market capitalisation of approximately US$400 billion.
The German derivatives exchange lists the new options and futures in euros and US dollars, with the respective FTSE Ethereum Index as the underlying.
The contract size is equivalent to 10 Ether (approximately US$35,000), both contracts are cash-settled, with expiration on the last Friday of the month.
In addition to monthly and quarterly maturities, weekly expiring contracts for options will also be available.
FTSE Russell, a London Stock Exchange Group business, cooperated with Digital Asset Research (DAR), on the development of the FTSE Ethereum Index, which captures data from vetted assets and exchanges to meet EU Benchmarks.
The final settlement rate of the new Eurex contracts is determined as the volume time-weighted average of the FTSE DAR Digital Asset Price over a 15-minute period prior to the fixing time.
Liquidity will be supported by orderbook and over-the-counter liquidity providers.
This move follows the launch of FTSE Bitcoin Index Futures and Options in 2023 as part of Eurex鈥檚 ambition to offer secure access to cryptocurrencies in a regulated market environment.
Over 100,000 contracts, equivalent to over US$3.5 billion notional, have been traded since the launch of FTSE Bitcoin Index in April 2023.
In October 2023, the company expanded its crypto product offering with options on Bitcoin Index Futures.
Randolf Roth, a member of the Eurex executive board, says: 鈥淎s one of the world鈥檚 leading central clearing counterparties (CCPs), Eurex offers trading on a regulated exchange and is therefore the right partner to enter the crypto space for institutional clients.鈥�
Kristen Mierzwa, head of digital assets at FTSE Russell, adds: 鈥淚n association with the experts at Digital Asset Research, we have established an industry standard for assessing underlying digital asset and exchange inclusion. We have applied this vetting methodology to offer indices reflective of the real investable market.鈥�
Ethereum is the second largest cryptocurrency, with a market capitalisation of approximately US$400 billion.
The German derivatives exchange lists the new options and futures in euros and US dollars, with the respective FTSE Ethereum Index as the underlying.
The contract size is equivalent to 10 Ether (approximately US$35,000), both contracts are cash-settled, with expiration on the last Friday of the month.
In addition to monthly and quarterly maturities, weekly expiring contracts for options will also be available.
FTSE Russell, a London Stock Exchange Group business, cooperated with Digital Asset Research (DAR), on the development of the FTSE Ethereum Index, which captures data from vetted assets and exchanges to meet EU Benchmarks.
The final settlement rate of the new Eurex contracts is determined as the volume time-weighted average of the FTSE DAR Digital Asset Price over a 15-minute period prior to the fixing time.
Liquidity will be supported by orderbook and over-the-counter liquidity providers.
This move follows the launch of FTSE Bitcoin Index Futures and Options in 2023 as part of Eurex鈥檚 ambition to offer secure access to cryptocurrencies in a regulated market environment.
Over 100,000 contracts, equivalent to over US$3.5 billion notional, have been traded since the launch of FTSE Bitcoin Index in April 2023.
In October 2023, the company expanded its crypto product offering with options on Bitcoin Index Futures.
Randolf Roth, a member of the Eurex executive board, says: 鈥淎s one of the world鈥檚 leading central clearing counterparties (CCPs), Eurex offers trading on a regulated exchange and is therefore the right partner to enter the crypto space for institutional clients.鈥�
Kristen Mierzwa, head of digital assets at FTSE Russell, adds: 鈥淚n association with the experts at Digital Asset Research, we have established an industry standard for assessing underlying digital asset and exchange inclusion. We have applied this vetting methodology to offer indices reflective of the real investable market.鈥�
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