The Chicago Mercantile Exchange Group (NASDAQ:CME) have signed a partnership agreement with a UK-based virtual currency exchange, Crypto Facilities to launch the CME CF Ether-Dollar Reference Rate and Real-Time Index to give users an easy access to the real-time Ethereum (ETH) prices in USD.
According to Tim McCourt, Managing Director and Global Head of Equity Products and Alternative Instruments at GME Group, the Ether Reference Rate, and Real-Time Index are basically meant to bring innovative solutions to the emerging needs in the marketplace. The index will act as a transparent and credible reference source for crypto prices for users of ETH.
The First BTC Futures
CME is the first company to launch the Bitcoin (BTC) futures in December last year in partnership with Chicago Board Options Exchange. Afterward, Crypto Facilities also followed recently by introducing the first regulated BTC futures contracts for ETH in the UK.
The two indexes will allow CME to track the performance of ETH in the crypto markets. Though it speculated that the company is planning to launch another crypto futures contract product, CME has opposed the claims stating that it’s currently focused on the ETH futures and there are no plans for new futures yet.
The CME new indexes will offer a standardized reference rate and spot price index. The first index CME CF Ether Dollar Real-Time Index is known as ETH_RTI_USD while the second Real Time index is called ETH_RR_USD… ETH_RTI_USD. Both indexes will be published each minute every day per year.
According to Coinbase, ETH is the second-largest cryptocurrency after BTC when basing on the crypto market capitalization. The coin has the potential to grow in the near future since several exchanges have expressed interest in prioritizing it on their crypto asset listing.
When CME first launched BTC futures contracts, many expected more institutional investors to embrace the idea and push the BTC prices higher. But instead, BTC prices continued to drop and currently, it’s trading at $8,700 less than half of its record of over $19,000 in December last year.