Eurex expands its crypto derivatives portfolio with the launch of FTSE Ethereum Index Futures and Options as of 12 August 2024.
Following the launch of FTSE Bitcoin Index Futures and Options in 2023, this is another major milestone in Eurex’s ambition to offer secure access to cryptocurrencies in a regulated market environment.
Ethereum is the second largest cryptocurrency with a market capitalization of approximately USD 400 billion. There is significant trading and hedging demand from institutional and professional customers, as reflected in record trading volumes in derivatives and other investment products.
The new options and futures are listed in EUR and USD, with the respective FTSE Ethereum Index as the underlying. The contract size is equivalent to 10 Ether (approximately USD 35,000). Both contracts are cash settled and expire on the last Friday of the month. In addition to monthly and quarterly maturities, weekly expiring contracts for options will also be available.
The FTSE Ethereum Index was developed by FTSE Russell together with Digital Asset Research (DAR). It captures data from vetted assets and exchanges to meet EU Benchmarks. The final settlement rate of the new Eurex contracts is determined as the volume time-weighted average of the FTSE DAR Digital Asset Price over a 15 minute period prior to the fixing time. Liquidity will be supported by orderbook and over-the-counter liquidity providers.
Eurex had already launched futures on the FTSE Bitcoin Index in April 2023. Over 100,000 contracts, equivalent to over USD 3.5 billion notional, have been traded since the launch. Crypto product offering was expanded with options on Bitcoin Index Futures in October 2023, to allow investors to hedge their Bitcoin exposure and express a more sophisticated market view with various trading strategies (e.g., straddles, put/call spreads, etc.).
Randolf Roth, Member of the Eurex Executive Board:
“We look forward to expanding our offering in crypto derivatives together with FTSE Russell and Digital Asset Research for our clients. 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.”
Kristen Mierzwa, Head of Digital Assets at FTSE Russell, an LSEG business:
“We are delighted to support the expansions of Eurex’s digital assets ecosystem with the offering of futures and options on the FTSE Ethereum Index. In association with the experts at Digital Asset Research we have established an industry standard for assessing underlying digital asset and exchange inclusion. We have applied this vetting methodology to offer indices reflective of the real investable market.”
