CME Changes Ethereum Target Rate – Sign of Ethereum Futures Coming Soon?
The Chicago Mercantile Exchange (CME) group will change the benchmark rate and index associated with the Ethereum cryptocurrency. Writes about this The Block with reference to a notice published by the company on Friday.
itBit, the stock exchange arm of New York-based fintech company Paxos, will provide data for two financial instruments that currently use Bitstamp and Kraken data. Crypto Facilities will continue to act as Index Administrator.
According to the CME, itBit meets the criteria for inclusion in the index. The addition of itBit could signal the imminent launch of Ether futures contracts, The Block said. “I believe this is how they are preparing to launch ether futures,” the source said. “But they need to improve the reliability of the index.”.
Lacking reliable data resources, fiat-based futures can be manipulated or simply not reflect the real price of the underlying instrument, the source added. “This is an implicit limitation on CME fiat futures – they always need market data from spot exchanges,” he said..
When asked by The Block about whether Ethereum futures will be launched in the near future, the exchange representative said that they are focused on working with the index and the benchmark rate..
Bitcoin’s benchmark CME rate is at the heart of a futures product pegged to the largest cryptocurrency. This year, the instrument was especially popular among trading participants, thanks to which new highs were set for several parameters at once. Data from itBit, Coinbase and Kraken are used to calculate the benchmark rate, among others.
itBit started trading Ethereum on the spot market this year. The ErisX and LedgerX platforms are also planning to launch their own futures for ether. Recently obtained permits will allow them to conduct settlements with bidders directly in cryptocurrency.
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