Europe’s
leading derivatives exchange, is set to broaden its cryptocurrency offerings
with the introduction of FTSE Ethereum Index Futures and Options on August 12,
2024. This move follows the successful launch of Bitcoin derivatives on Eurex
in 2023, marking another step in its strategy to provide regulated access to
major cryptocurrencies .
The new
Ethereum-based contracts will be available in both euros and US dollars, with
each contract representing 10 ETH, valued at approximately $35,000. These
cash-settled derivatives will expire on the last Friday of each month, offering
monthly and quarterly maturities. Additionally, weekly expiring options will be
available to provide traders with more flexibility.
Randolf Roth, a member of Eurex’s Executive Board
“As
one of the world’s leading CCPs, Eurex offers trading on a regulated exchange
and is therefore the right partner to enter the crypto space for institutional
clients,” Randolf Roth, a member of Eurex’s Executive Board, commented. “We
look forward to expanding our offering in crypto derivatives together with FTSE
Russell and Digital Asset Research for our clients.”
The
underlying FTSE Ethereum Index, developed in collaboration with Digital Asset
Research (DAR), adheres to EU Benchmark standards. The final settlement rate
for these contracts will be determined using a volume time-weighted average
over a 15-minute period prior to fixing.
This
expansion comes as Ethereum , with a market capitalization of around $400
billion, continues to attract significant institutional interest. This is also
a natural step following the success of a similar instrument for the oldest
cryptocurrency, Bitcoin.Eurex’s BTC derivatives, launched in April 2023, have
seen over 100,000 contracts traded, equivalent to more than $3.5 billion in
notional value.
“In
association with the experts at Digital Asset Research we have established an
industry standard for assessing underlying digital asset and exchange inclusion,
”Kristen Mierzwa, Head of Digital Assets at FTSE Russell, an LSEG business,
commented. “We have applied this vetting methodology to offer indices
reflective of the real investable market.”
Last year,
Eurex became the first European exchange to introduce crypto index futures with
the launch of the FTSE Bitcoin Index in both USD and EUR. It is important to
note that Eurex has already been listing a variety of other
cryptocurrency-related instruments in the past. For instance, in 2021, the exchange
expanded its offerings to include Bitcoin ETNs.
Eurex Trading Volumes
In 2023,
Eurex saw a slight decrease of 2% in its total trading volume, which amounted
to 1,915.1 million contracts. This reduction was largely due to a 9% drop in
index derivatives, which totaled 871.7 million contracts. Conversely, the OTC
Clearing sector saw an increase, with average daily cleared volumes rising by
10% to €185 billion, up from €169 billion. The category of GC Pooling
experienced the most significant growth, with volumes surging by 142% to reach
€158.9 billion.
Recently,
Eurex appointed Robbert Booij from ABN Amro as its new CEO. Booij, previously
acquainted with Eurex through his role at ABN AMRO Clearing Bank N.V.,
expressed his familiarity and honor in having served as the Chairman of the
Eurex Exchange Council.
Europe’s
leading derivatives exchange, is set to broaden its cryptocurrency offerings
with the introduction of FTSE Ethereum Index Futures and Options on August 12,
2024. This move follows the successful launch of Bitcoin derivatives on Eurex
in 2023, marking another step in its strategy to provide regulated access to
major cryptocurrencies .
The new
Ethereum-based contracts will be available in both euros and US dollars, with
each contract representing 10 ETH, valued at approximately $35,000. These
cash-settled derivatives will expire on the last Friday of each month, offering
monthly and quarterly maturities. Additionally, weekly expiring options will be
available to provide traders with more flexibility.
Randolf Roth, a member of Eurex’s Executive Board
“As
one of the world’s leading CCPs, Eurex offers trading on a regulated exchange
and is therefore the right partner to enter the crypto space for institutional
clients,” Randolf Roth, a member of Eurex’s Executive Board, commented. “We
look forward to expanding our offering in crypto derivatives together with FTSE
Russell and Digital Asset Research for our clients.”
The
underlying FTSE Ethereum Index, developed in collaboration with Digital Asset
Research (DAR), adheres to EU Benchmark standards. The final settlement rate
for these contracts will be determined using a volume time-weighted average
over a 15-minute period prior to fixing.
This
expansion comes as Ethereum , with a market capitalization of around $400
billion, continues to attract significant institutional interest. This is also
a natural step following the success of a similar instrument for the oldest
cryptocurrency, Bitcoin.Eurex’s BTC derivatives, launched in April 2023, have
seen over 100,000 contracts traded, equivalent to more than $3.5 billion in
notional value.
“In
association with the experts at Digital Asset Research we have established an
industry standard for assessing underlying digital asset and exchange inclusion,
”Kristen Mierzwa, Head of Digital Assets at FTSE Russell, an LSEG business,
commented. “We have applied this vetting methodology to offer indices
reflective of the real investable market.”
Last year,
Eurex became the first European exchange to introduce crypto index futures with
the launch of the FTSE Bitcoin Index in both USD and EUR. It is important to
note that Eurex has already been listing a variety of other
cryptocurrency-related instruments in the past. For instance, in 2021, the exchange
expanded its offerings to include Bitcoin ETNs.
Eurex Trading Volumes
In 2023,
Eurex saw a slight decrease of 2% in its total trading volume, which amounted
to 1,915.1 million contracts. This reduction was largely due to a 9% drop in
index derivatives, which totaled 871.7 million contracts. Conversely, the OTC
Clearing sector saw an increase, with average daily cleared volumes rising by
10% to €185 billion, up from €169 billion. The category of GC Pooling
experienced the most significant growth, with volumes surging by 142% to reach
€158.9 billion.
Recently,
Eurex appointed Robbert Booij from ABN Amro as its new CEO. Booij, previously
acquainted with Eurex through his role at ABN AMRO Clearing Bank N.V.,
expressed his familiarity and honor in having served as the Chairman of the
Eurex Exchange Council.
