CME Group launches euro-denominated Bitcoin and Ether futures

August 29, 2022 Coin Telegraph

First announced on Aug. 4, the euro-denominated Ether futures represent investment vehicles launched prior to the blockchain's transition to proof-of-stake.

Derivatives marketplace Chicago Mercantile Exchange Group has launched trading for Bitcoin euro and Ether euro futures contracts.

In a Monday announcement, CME Group said that it launched contracts for euro-denominated Bitcoin (BTC) and Ether (ETH) futures sized at 5 BTC and 50 ETH per contract. Both contracts will be listed on CME, cash-settled and based on the CME CF Bitcoin-Euro Reference Rate and CME CF Ether-Euro Reference Rate, respectively.

"Our new Bitcoin Euro and Ether Euro futures will provide institutional clients, both within and outside the U.S., with more precise and regulated tools to trade and hedge exposure to the two largest cryptocurrencies by market cap,” said CME Group global head of equity and FX products Tim McCourt.

First announced on Aug. 4, the euro-denominated ETH futures represent investment vehicles launched prior to the Merge in which the Ethereum blockchain transitions to proof-of-stake — expected between Sept. 10 an20. Cointelegraph reported that countries in Europe, the Middle East and Africa represented 28% of all trading for BTC and ETH futures contracts.

CME Group launched its first BTC futures contract in December 2017, followed by an ETH futures contract in February 2021. In 2022, the derivatives exchange expanded its offering of crypto investment vehicles to include micro BTC and ETH futures. The launch of euro-denominated BTC and ETH futures came as the euro remained at parity with the U.S. dollar — at the time of publication, 1 euro is worth roughly $1.

According to data from Cointelegraph Markets Pro, the price of ETH is $1,509 at the time of publication, having risen more than 3% in the last 24 hours. The BTC price fell below $20,000 on Sunday, hitting a 20-month low, but since rose 2% to reach $20,342.

CME Bitcoin futures see record discount amid ‘very bearish sentiment’

August 26, 2022 Coin Telegraph

bitcoin futures

Derivatives traders have become noticeably more conservative this month compared to last, new data shows.

Bitcoin (BTC) futures are starting to see record discounts as sentiment among derivatives traders worsens.

In its latest dedicated report issued Aug. 23, analysis firm Arcane Research painted a worrying picture of morale among BTC futures participants.

Futures basis revisits June lows

After an initial shock during June’s BTC price drop, which has since held as a macro bottom, Bitcoin derivatives have not been the same.

After an initial bounce, metrics are trending downwards, and this month are challenging records.

Futures basis — the difference between futures contract prices and the Bitcoin spot price — is already back at lows only seen during June’s dip to $17,600. The move came thanks to last week’s sudden sell-off on BTC/USD, which resulted in multiple visits below the $21,000 mark.

“Overall, the current futures basis sits at levels only experienced briefly during the June crash,” Arcane confirmed, adding that the data is “indicative of a very bearish sentiment among futures traders.”

More discouraging figures come from CME Group’s front-month futures contract price.

Beating out prior lows from July 2021, those contracts now trade at their biggest-ever discount to spot price.

“Overall, CME’s futures have tended to trade at a discount in the last two months but saw a solid short-lived recovery during the early August strength in the market,” the report continued.

*CME Bitcoin futures annualized 1-month rolling basis chart (screenshot). Source: Arcane Research*

Arcane argued that “structural effects” within the derivatives market could go some way to explaining the behavior, but that “worsening liquidity or general de-risking” were both still a risk.

“While BTC derivatives might signal a climate ripe for a short squeeze, the choppy trading range alongside global market turmoil speaks in favor of conservative positioning and gradual accumulation in the spot market,” it concluded.

GBTC lingers near record lows

After United States regulators rejected its application for a Bitcoin spot price exchange-traded fund (ETF) in June, meanwhile, the largest institutional Bitcoin investment vehicle continues to struggle.

The Grayscale Bitcoin Trust (GBTC) is still trading at more than a 30% discount to the Bitcoin spot price.

The latest data, which Cointelegraph previously reported, puts the GBTC discount — once a premium — at 32.5%. The discount also saw records in June, when it briefly passed 34%.

For investor and researcher Jeroen Blokland, signs of a trend change remain elusive.

“I expect that 'physical' bitcoin ETFs will get approved at some point. After the recent SEC ruling, that doesn't seem imminent, but futures ETFs (also) have their menaces,” he argued this week.

Blokland said that institutional investors were “massively” choosing BTC exposure options other than GBTC.

*GBTC premium vs. asset holdings vs. BTC/USD chart. Source: Coinglass*

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

CME Group plans to launch euro-denominated Bitcoin and Ether futures

August 4, 2022 Coin Telegraph

bitcoin futures

The futures options, expected to start trading on Aug. 29, followed the CME Group launching micro-sized Bitcoin and Ether options in March.

Major derivatives marketplace Chicago Mercantile Exchange Group aims to launch trading for Bitcoin euro and Ether euro futures contracts starting on Aug. 29.

In a Thursday announcement, CME Group said that subject to regulatory review, it plans to launch contracts for euro-denominated Bitcoin (BTC) and Ether (ETH) futures that will be sized at 5 BTC and 50 ETH per contract. Both contracts will be listed on CME, cash-settled, and based on the CME CF Bitcoin-Euro Reference Rate and CME CF Ether-Euro Reference Rate.

"Ongoing uncertainty in cryptocurrency markets, along with the robust growth and deep liquidity of our existing Bitcoin and Ether futures, is creating increased demand for risk management solutions by institutional investors outside the U.S.,” said CME Group global head of equity and FX products Tim McCourt. "Euro-denominated cryptocurrencies are the second highest traded fiat behind the U.S. dollar.”

Introducing Bitcoin Euro and Ether Euro futures, a second currency pair on our market-leading Cryptocurrency futures. Manage bitcoin and ether exposure in the underlying currency of your choice starting Aug. 29. https://t.co/PfN3hTCvWC pic.twitter.com/rci4NnAfKz
— CME Group (@CMEGroup) August 4, 2022

According to McCourt, countries in Europe, the Middle East and Africa represented 28% of all trading for BTC and ETH futures contracts. The listing announcement also followed the euro reaching parity with the U.S. dollar in July for the first time in 20 years — at the time of publication, 1 euro is worth roughly $1.02.

CME Group launched the first BTC futures contract — denominated in U.S. dollars — in December 2017, followed by an ETH futures contract in February 2021. In March, the derivatives exchange expanded its offering of crypto investment vehicles to include micro BTC and ETH futures.

Cointelegraph reported in July that CME Group’s BTC and ETH derivatives contracts saw record activity in the second quarter of 2022, with 10,700 and 6,100 contracts traded, respectively. The exchange also reported its micro BTC and ETH products had an average daily volume of 17,400 and 21,300 contracts, respectively, in Q2 2022. Much of the trading activity came amid extreme volatility in the crypto market, with the prices of both BTC and ETH dropping in May and June.

CME crypto futures see record activity during bear market

July 28, 2022 Coin Telegraph

bitcoin futures

The trading of Bitcoin and Ether futures on CME remained elevated in the second quarter, with daily open interest hitting all-time highs.

Bitcoin (BTC) and Ether (ETH) derivatives contracts offered by CME Group saw record activity in the second quarter, offering tangible evidence that professional traders were still accessing digital assets during the bear market.

The average daily open interest (OI) across CME’s crypto futures products reached 106,200 contracts in the second quarter, the highest on record, the company disclosed Thursday. In futures markets, OI reflects the total number of derivatives contracts that have not been settled.

In terms of average daily volume, Bitcoin futures saw 10,700 contracts traded in the second quarter; Ether’s daily volume was 6,100 contracts.

During the week of June 21, large open interest holders (LOIH) accessing CME Group’s crypto products reached a high of 404, signaling “growing interest from institutional and large sophisticated investors,” the company said.

Recession or no recession? Bitcoin traders diverge from the Fed as BTC gains. https://t.co/AeLWgl5zbj
— Cointelegraph (@Cointelegraph) July 28, 2022

Despite extreme market volatility for Bitcoin and Ether, CME Group’s crypto futures products have been “a haven of consistent liquidity with continued volume and open interest growth for investors,” Tim McCourt, CME’s global head of equity and FX products, said, adding:

“The variety of products, including the smaller sized micro bitcoin and micro ether futures and options, offers enhanced flexibility and trading precision for a range of market participants, including large institutions as well as sophisticated, active traders.”

In 2017, CME Group became the second derivatives marketplace to offer Bitcoin futures contracts, trailing its cross-town rival CBOE Global Markets by one week. By the end of 2020, CME’s cumulative Bitcoin futures volume reached $100 billion.

The derivatives exchange has since gone on to launch several crypto derivatives products, including micro-sized Bitcoin and Ether options. These contracts are 10% the size of their respective crypto assets, giving traders more opportunities to hedge their exposure.

On Thursday, CME revealed that its Micro BTC product saw an average daily volume of 17,400 contracts in the second quarter. Daily volume for its ETH-equivalent micro contract was 21,300.

Bitcoin ETFs and Open Interest From BTC Futures, Options Follow Crypto Economy’s Spot Market Decline

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US Markets Regulator Sues Crypto Exchange Gemini Over Alleged Violations Regarding Bitcoin (BTC) Futures Product

June 3, 2022 The Daily Hodl

CFTC sues Gemini claiming the crypto exchange lied in futures contract evaluation

June 2, 2022 Coin Telegraph

bitcoin futures

The agency says the exchange gave false information in person and in documents in its 2017 bid to be among the first to offer Bitcoin futures contracts.

The United States Commodity Futures Trading Commission (CFTC) filed suit against Gemini Trust Co. in the U.S. Southern District Court of New York on Thursday. The CFTC claimed in the civil suit that Gemini made false or misleading statements to the CFTC in 2017 during in-person meetings and in documents, violating the Commodity Exchange Act and other regulations.

The agency was making an evaluation of the potential self-certification of a Bitcoin (BTC) futures contract to be based on the spot Bitcoin price determined by an auction held on Gemini’s digital asset trading platform.

The CFTC was considering whether the proposed Bitcoin futures contract would be susceptible to manipulation. The proposed Bitcoin futures contract would have been among the first digital asset futures contracts listed.

Gemini is the cryptocurrency trading platform founded by brothers Cameron and Tyler Winklevoss. It announced staff cuts Thursday and is preparing to lay off 10% of its workers due to the crypto market downturn.

This story is still in development.

The Brazilian Stock Exchange will launch Bitcoin and Ethereum futures

May 16, 2022 Coin Telegraph

bitcoin futures

Chief financial officer André Milanez said that the product will launch within the next si months.

B3, the Brazilian Stock Exchange, confirmed that within six months it intends to launch its first official product aimed at the cryptocurrency market — Bitcoin (BTC) futures trading. The group's chief financial officer, André Milanez, made the announcement during a conference call on Monday.

Milanez did not provide many details on how the product will work. It is not yet known if B3 will form a partnership or if it will offer Bitcoin futures trading directly, but the timeline for launching this product was stated to be relatively short. "We plan to launch bitcoin futures in the next three to six months," he said.

Currently, in Brazil, institutional and retail investors can trade 11 ETFs through B3 with exposure to cryptocurrencies, including CRPT11 from Empiricus with Vitreo; the NFTS11 of Investo; QBTC11, QETH11 and QDFI11 all from QR Assets and META11, HASH11, BITH11, ETHE11, DEFI11, WEB311 all from Hashdex. In addition, in Brazil, there are more than 25 investment funds approved by the Securities and Exchange Commission (CVM) that offer different types of exposure to the crypto-assets market.

In January Jochen Mielke de Lima, director of information technology at B3, had already said that the Brazilian stock exchange would launch several products with exposure to cryptocurrencies in 2022, including Bitcoin futures and Ethereum (ETH) futures

At the time, the executive highlighted that the Brazilian stock exchange had been looking closely at the cryptocurrency market from a technological point of view since 2016.

According to the statement, B3 only needed to settle the question on whether the negotiations would be carried out against the U.S. dollar or against the Brazilian real. Futures contracts need a reference index, so if the team chooses Brazil's native currency, it will be necessary to compose a crypto-assets index in reais — something that does not exist now.

The B3 rep also said it is exploring ways to provide data inputs for the country’s central bank digital currency, or CBDC.

B3 and Cryptocurrencies

In addition to BTC and ETH futures, B3 also intends to offer services to national cryptocurrency exchanges and to be a kind of "centralizer" of custody and settlement operations, according to Jochen Mielke de Lima:

“We have around 30 national crypto exchanges, apart from the international ones that operate here. We could offer a service to facilitate and standardize their operations. I believe it has something to explore in providing custody services and in the settlement process.”

Mielke, also stated that the cryptocurrency market is very similar to the regulated stock market, as it involves issuing, trading, settlement and custody. He stated therefore that B3 could help solve common problems between exchanges.

“We are identifying points of friction that we can help resolve to face up, such as helping our customers provide the best access to their end customers,” he said.

In addition, B3 plans other products based on cryptocurrencies and blockchain to launch in 2022. Among them, there are studies on a platform for asset tokenization, cryptocurrency trading, cryptocurrency custody, among others.

"Trading and access to liquidity centers: this means mitigating the complexities of accessing a fragmented, global and 24x7 market; Digital Asset Custody: providing reliable custody (hence, purpose of blockchain transactions); Over-the-counter facilitation: thIn this way, it wants to provide more security and efficiency in the movement and DVP of digital assets; Capital efficiency gains: thus, it wants to mitigate the pre-funded nature of operations and Crypto as a service: make it easier for clients to explore the crypto market with low friction," highlighted B3.

For 2022, B3 reps said they foresee the official launch of a reinsurance platform. This will work on the Corda blockchain R3, and is a partnership between the exchange and IRB Brazil.

Synthetix (SNX) rallies in anticipation of L2 Curve Wars and Optimism airdrop announcement

April 27, 2022 Coin Telegraph

Altcoin Watch

SNX price got a boost after the project geared up for participation in the L2 Curve Wars and Optimism airdrop hunters engaged with the protocol.

Layer-two (L2) solutions for the Ethereum (ETH) network have grown in prominence over the last year because of the need for scalable networks that offer low-fee transactions and led to numerous projects that built cross-chain bridges with competing blockchain networks.

One project that has benefitted from the growth of the L2 scaling solutions is Synthetix (SNX), a decentralized finance (DeFi) protocol that enables the creation of synthetic assets and offers exposure to derivatives and futures trading on blockchain.

Data from Cointelegraph Markets Pro and TradingView shows that since hitting a low of $4.44 on April 11, the price of SNX rallied 52.6% to hit a daily high at $6.78 on April 26 before a widespread market downturn dropped it back down to $5.90.

*SNX/USDT 1-day chart. Source: TradingView*

While the majority of the market is down, there are potential catalysts for SNX price to see further appreciation.

Launch on Optimism

One of the biggest developments for the Synthetix protocol was its launch on Optimism, a L2 network which is making waves this week thanks to an airdrop announcement. SNX staking began on Jan. 16 and as the network grows, speculators are giddy at the prospect of future airdrops and staking incentives.

Most recently, Synthetix used its launch on Optimism to get more involved in the “Curve Wars” and currently, it is offering the highest bribe to get veCRV voters to incentivize voting for the sUSD Curve pool.

Synthetix has also partnered with Lyra Finance (LYRA) to offer 12,000 SNX and 50,000 LYRA per week as an added incentive for veCRV voters.

L2 airdrop season could be a catalyst for SNX

A second reason the price of SNX has the potential to see further appreciation is traders' expectation that an airdrop season for L2 protocols could occur.

There has been a significant amount of speculation that Optimism and Arbitrum, two of the most popular L2 networks in the crypto ecosystem, would eventually airdrop their protocol tokens to early adopters of the networks.

This speculation became reality after Optimism released the initial details of the Optimism Collective, a “large-scale experiment in digital democratic governance” that is “built to drive rapid and sustainable growth of a decentralized ecosystem.”

Along with the launch of the Optimism Collective comes the launch of the OP governance token, of which 5% of the initial supply will be airdropped to early adopters. For those who did not qualify for the first airdrop round, there is still a chance to qualify for future airdrops by being active on the network using protocols like Synthetix.

With Synthetix offering futures trading on Optimism, the protocol could benefit from users seeking ways to be active on the network and this could increase demand for SNX.

On top of the potential to receive an OP airdrop, SNX holers have also been lured to Optimism by the 81% staking rewards currently being offered by the protocol.

Climbing user base and volume transacted

Further evidence of the rising popularity of Synthetix can be found looking at the platform's metrics on Optimism, which have been steadily increasing for the past month according to data from Dune Analytics.

*Synthetix protocol metrics. Source: Dune Analytics*

As shown in the graphic above, the number of unique traders on the protocol has been climbing since launching futures trading in mid-March and the protocol has handled nearly $1.59 billion in total volume.

VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for SNX on April 23, prior to the recent price rise.

The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

*VORTECS™ Score (green) vs. SNX price. Source:* *Cointelegraph Markets Pro*

As seen in the chart above, the VORTECS™ Score for SNX climbed into the green zone and hit a high of 77 on April 23, around 39 hours before the price spiked 28% over the next day.

bitcoin futures

Futures basis revisits June lows

GBTC lingers near record lows

B3 and Cryptocurrencies

Launch on Optimism

L2 airdrop season could be a catalyst for SNX

Climbing user base and volume transacted

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