A pension fund in the United States has added both Bitcoin and Ether to its portfolio. This marks the first-ever cryptocurrency investment by a US public pension plan, further highlighting institutional demand for crypto exposure. Firefighter Pension Partners With NAYDIG According to a press release from Newswire, the Houston Firefighters' Relief and Retirement Fund (HFRRF) announced their investment this morning. NAYDIG – a Fintech service provider for banks, corporations, and institutions – facilitated the purchase on the fund’s behalf. It…
The Chicago Mercantile Exchange (CME), one of the world’s two largest futures markets, has just announced the upcoming arrival of Ether Futures (ETH). This development is expected to expose the popular altcoin to more traders who could have a ripple effect on its price.
Ether (ETH) Arrives at CME Group
CME Group revealed today that it intends to introduce Ethereum (ETH) futures on its platform by February 8, 2021. The launch date of this new derivative will depend on its approval by regulators. Furthermore, the new contract will be settled in cash, based on the Ether dollar benchmark rate. CME determines the price of ETH by aggregating its prices on Bitstamp, Coinbase, Gemini, itBit, and Kraken. The derivative firm also specified that each contract would contain 50 ETH.
CME is one of the largest and most diversified derivatives globally and is favored by professional investors. The arrival of Ether Futures on CME is a boon for the altcoin, which will enjoy unprecedented visibility. For CME Group, the introduction of Ether futures seems to be obvious. Ethereum is the second-largest crypto in the world based on market cap and daily volume. This makes it a logical option for CME Group.
Speaking on the development, Tim McCourt of CME Group believes it is the right step. “Given the growing customer demand and strong growth in our Bitcoin futures and options markets, we believe the addition of Ether futures will provide our clients with a valuable tool to trade and hedge this Growing cryptocurrency,” He said.
CME, a Harbinger of ATH?
Oddly enough, CME’s announcement of an Ether futures contract coincided with Bitcoin’s much-anticipated rise above $20,000. A double coincidence that places CME Group as a sort of announcer of Bitcoin’s ATH.
Either way, Ether is not experiencing the same progression and is currently trading around $620. The altcoin is still a long way from reaching its record high of $1,600 set in 2018. However, Ether has been bullish in recent weeks and could hit the mark in the coming months.
The news of CME’s addition of Ether has generated mixed reviews from the crypto community. Some believe it is a good development, while others think that it could slow Ether’s progression. As with Bitcoin, the expiration of Ether futures contracts will be one to watch, as it is likely to cause a rapid fall in the asset’s price.