Ether options began trading on CME yesterday led by a block trade between Genesis and Cumberland. As the Ethereum merge approaches the opportunity for investors to hedge price risk for Ether (ETH) through CFTC regulated, centrally cleared options contracts will be invaluable.
The launch of Ether options further extends the suite of instruments that investors and product providers can utilise to create differing pay-off structures, an invaluable tool as investors seek to integrate digital assets into their existing portfolios of traditional assets.
The Ether options from CME will settle to the CME CF Ether Dollar Reference Rate that has already proven itself to be a robust and reliable benchmark index being the settlement mechanism for the Ether futures, micro futures and micro options that are also listed by CME. The index also serves as the NAV mechanism for the ETHR ETF listed on TSX by Evolve ETFs and the ETH11 ETF listed on B3 by QR Asset.
The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell any of the underlying instruments cited including but not limited to cryptoassets, financial instruments or any instruments that reference any index provided by CF Benchmarks Ltd. This communication is not intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. Please contact your financial adviser or professional before making an investment decision.
Note: Some of the underlying instruments cited within this material may be restricted to certain customer categories in certain jurisdictions.
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