Posted 7 months ago | by @devadmin
CME Group will begin the process to list an Ethereum (ETH) futures product next year, the firm said in a post on its website on Wednesday. Meanwhile, a hedge fund has pledged to invest the largest amount thus far into cryptocurrency at $1 billion dollars.
The Ethereum based futures product is coming to the market on February 8th, subject to regulatory approval. The contract will be cash-settled and based on the firm’s CME CF Ether-Dollar Reference. According to CME’s website, one Ethereum future’s contract will be equal to a total of 50 ETH or roughly $33,205.50 at the time of this report.
“Building on the success of Bitcoin futures and options, CME Group will add Ether futures to the cryptocurrency risk-management solutions available to trade in February,” the firm said in a post on its website.
At the beginning of 2020, the firm previously launched its Bitcoin options product. CME Group also previously launched a Bitcoin futures contract at the height of the 2017 cycle as Bitcoin topped out at around $20,000.
As Bitboy Crypto previously reported, a company in Canada, digital asset investment manager 3iQ recently became the world’s first IPO to launch an Ethereum ETF. The fund is self-titled called, The Ether Fund, traded on the Toronto Stock Exchange (TSX) under the ticker QETH.U.
This comes on the heels of a big bet on Bitcoin and Ethereum by a hedge fund One River Asset Management that specializes in volatility has created a digital currency based company to invest in digital assets with its eyes set on a $1 billion dollar fund. One of the largest investors in Bitcoin and cryptocurrency thus far quietly buying more than $600 million in cryptocurrencies and joining forces with Alan Howard, the co-founder of Brevan Howard Asset Management.
Eric Peters, who serves as the chief executive officer of One River Asset Management, told Bloomberg in an interview he set up a new company to seize on the growing interest in cryptocurrencies among institutional investors.
Bloomberg notes that Bitcoin has almost tripled in price this year by breaking all-time highs yesterday as Bitboy Crypto reported.
“There is going to be a generational allocation to this new asset class,” Peters said. “The flows have only just begun.”
Another investor under One River Digital is Ruffer LLP, the U.K. investment firm also known for its own market strategies for volatility. Ruffer itself on Tuesday disclosed a 2.5% position in Bitcoin in one of its funds confirming a massive Bitcoin investment of $744m purchased in November shifting money from gold to Bitcoin. Ruffer stated its investment was “a small but potent insurance policy against the continuing devaluation of the world’s major currencies.”
Peters, states he was attracted to digital assets for the same reasons he predicts more volatility in financial markets, government fiscal spending which he feels will eventually cause inflation. So once again another institutional trader who believes that Bitcoin is a good hedge against fiat inflation. Peters joins the ranks of Michael Saylor, Mike Novogratz, and Paul Tudor Jones who all share the same mindset.
“Covid-19 provided the ultimate catalyst for that transition,” Peters told Bloomberg. “This is the most interesting macro trade I’ve seen in my career.”
Bitcoin is currently trading at [FIAT: $22,871.48] UP +12.2%, while Ethereum is trading at [FIAT: $658.68] UP +8.2% in the last 24 hours according to Coingecko at the time of this report.