Trading firm Cumberland has conducted the first block trade of an ETH/BTC futures contract at CME Group.
This new contract will allow traders to express an opinion on how the value of Bitcoin relates to the value of the Ethereum ecosystem.
Cumberland trades first block in CME Group’s futures contract
Despite the slowdown in spot trading activity in the crypto market, liquidity is stabilizing in the futures and options markets. CME Group is already home to its flagship Bitcoin futures and options products and now offers various crypto derivatives with ETH/BTC contract.
Cumberland stated that the new ETH/BTC contract will provide a way for traders to understand how Bitcoin acts as a store of value and how it relates to the value of the Ethereum ecosystem. In this new contract, crypto company XBTO Group took part as a counterparty in the blockchain trade.
Such crypto futures contracts and other derivatives can help the crypto market attract more institutional participants and increase liquidity. It also offers investors the opportunity to hedge and take positions between different crypto assets.
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