Ethereum News
Roundup: CME to Launch Ether Futures, Gemini Announces ETH Staking Support
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The final preparations ahead of The Merge and recent debate around the sanction of cryptocurrency mixer Tornado Cash have brought focus on Ethereum. The interest in Ether products has also increased, evidenced by exchanges introducing more Ethereum-linked offerings on their platf0rms. Last week, the CME disclosed plans to launch Ether futures options. Cryptocurrency exchange and custodian Gemini also launched ETH staking, revealing expectations of high liquidity available.
CME Group to launch Ether futures options days to the Merge
The derivatives giant Chicago Mercantile Exchange (CME) Group last week on Wednesday (Aug. 17) announced plans to introduce options on Ether futures. The Ether options launch will happen on Sept. 12 – just a few days from the projected Merge date – subject to regulatory approval. The new Ether product will be sized at 50 ETH per contract and will track the price of ETH via the CME CF Ether-Dollar Reference Rate, which the exchange developed in cooperation with Crypto Facilities.
The transition of the Ethereum network from proof of work to a more efficient proof of stake mechanism is the very motivation behind the platform's decision to launch the futures options for the world's second-largest digital asset. With this planned introduction, the CME Group expands the list of products it offers customers to cater to what the global head of equity and FX products Tim McCourt at the firm called “heightened activity in our September and December Micro Ether options.”
Increased activity around Ethereum products
The CME Group executive observed that the anticipation for the Merge has also seen the open interest for futures on Ethereum and micro-sized ETH futures options jump. McCourt noted that 78% of open interest for micro-Ether options is in the September and December contracts.
Overall, the firm has crossed 1.8 million Ether futures contracts, following a highly performing second quarter in which the firm saw an average of 6,600 daily contracts, up 27% from the previous quarter. This trend extended from June to July, in which the Group says the average daily trading volume of ETH futures increased by 7%, while the same volume of contracts for micro-sized ETH futures grew by 41%.
The CME Group's most recent Ether product matches the Bitcoin futures options debuted in January 2020. The global markets company started offering ETH futures in February last year, adding micro-sized Ether futures last December. For Bitcoin, the CME Group launched the token's futures back in 2017. As a sign of a maturing market and increased security, the firm then began offering micro-sized Bitcoin futures contracts starting May last year. Earlier this year, the derivatives marketplace announced options for its micro-sized Ether and Bitcoin futures.
Gemini crypto exchange to offer support for Ether staking
Gemini crypto exchange on Thursday (Aug. 18) announced support for Ether staking for investors in Singapore, Hong Kong and the United States (except New York, where staking is outlawed). The new service launched as Gemini Staking debuted with support for Polygon's MATIC. The plan is to include Ethereum, Solana, and Polkadot in the near future.
The New York-headquartered exchange will also support the staking of the native token of the decentralized music streaming platform Audis. Consumers who stake crypto assets on the platform will gain rewards just as Gemini Earn does for its users. The only difference is that in the case of the staking service, depositors would be incentivized via blockchain validation. However, it remains unclear whether Gemini aims to run its validator node (as Coinbase does) or alternatively collaborate with external validators.
Vice President of Product Layla Amjadi told news outlet CoinDesk that the exchange's decision is motivated by the expectation there will be higher liquidity available, in addition to higher yields hence making staking much more lucrative. Gemini pointed out that customers who utilize their service do not have to bear the burden of technical hurdles. The platform will incur gas fees, slash penalties, and cover infrastructure expenditures. Additionally, it will provide an institutional security framework rather than letting consumers store their own keys.
Many crypto exchanges, including Coinbase, FTX, Crypto.com, Binance, and KuCoin are already on this Ether staking path. In a recent client note, JP Morgan singled out Coinbase as one of the biggest beneficiaries of the upcoming transition to PoS through its ETH staking support. Coinbase debuted staking on its institutional crypto investing solution Coinbase Prime, available to US clients according to a blog post published at the start of the month.
Monochrome set to join Australia's flooded and struggling spot Bitcoin ETF market
Digital asset manager Monochrome through its responsible entity & custodial partner, Vasco, has acquired an Australian Financial Service License. Most approved crypto ETFs in the country run under the general financial asset authorization and indirectly hold crypto assets. However, the asset manager's unique licensure via Vasco duly authorizes it to hold such assets and list spot crypto ETFs on the Australian Securities Exchange.
The Australian Securities & Investments Commission (ASIC) approval means the asset manager can now offer the Monochrome Bitcoin ETF, which has been in the works since February. The product will allow investors putting their funds in it to get direct insured exposure to Bitcoin and other cryptocurrencies. Though the Brisbane-based asset manager did not reveal when the product launches, it assured that the product would be listed in due course within the framework established by the local securities watchdog, ASIC.
Jeff Yew, the firm's CEO, lauded the approval from the financial markets regulator, adding that it is beneficial to the advice industry and also retail investors. Crypto-related ETFs are yet to see significant adoption in Australia, with the country's first spot-based Bitcoin ETF, the Cosmos Purpose Ethereum Access ETF getting poor low reception when it went live earlier in May. Other crypto ETFs that have performed poorly than market expectations include BetaShares Metaverse ETF and 3iQ CoinShares' Bitcoin Feeder ETF.
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