Europe’s Top Derivatives Exchange Targets $400B Ethereum Market with New Instruments

Europe's leading derivatives exchange, is set to broaden its cryptocurrency offerings with the introduction of FTSE Ethereum Index Futures and Options on August 12, 2024. This move follows the successful launch of Bitcoin derivatives on Eurex in 2023, marking another step in its strategy to provide regulated access to major cryptocurrencies.

Eurex to Launch Ether Futures and Options, Expanding Crypto Derivatives Suite

The new Ethereum-based contracts will be available in both euros and US dollars, with each contract representing 10 ETH, valued at approximately $35,000. These cash-settled derivatives will expire on the last Friday of each month, offering monthly and quarterly maturities. Additionally, weekly expiring options will be available to provide traders with more flexibility.

"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," Randolf Roth, a member of Eurex's Executive Board, commented. “We look forward to expanding our offering in crypto derivatives together with FTSE Russell and Digital Asset Research for our clients.”

The underlying FTSE Ethereum Index, developed in collaboration with Digital Asset Research (DAR), adheres to EU Benchmark standards. The final settlement rate for these contracts will be determined using a volume time-weighted average over a 15-minute period prior to fixing.

This expansion comes as Ethereum, with a market capitalization of around $400 billion, continues to attract significant institutional interest. This is also a natural step following the success of a similar instrument for the oldest cryptocurrency, Bitcoin.Eurex's BTC derivatives, launched in April 2023, have seen over 100,000 contracts traded, equivalent to more than $3.5 billion in notional value.

“In association with the experts at Digital Asset Research we have established an industry standard for assessing underlying digital asset and exchange inclusion, ”Kristen Mierzwa, Head of Digital Assets at FTSE Russell, an LSEG business, commented. “We have applied this vetting methodology to offer indices reflective of the real investable market.”

Last year, Eurex became the first European exchange to introduce crypto index futures with the launch of the FTSE Bitcoin Index in both USD and EUR. It is important to note that Eurex has already been listing a variety of other cryptocurrency-related instruments in the past. For instance, in 2021, the exchange expanded its offerings to include Bitcoin ETNs.

Eurex Trading Volumes

In 2023, Eurex saw a slight decrease of 2% in its total trading volume, which amounted to 1,915.1 million contracts. This reduction was largely due to a 9% drop in index derivatives, which totaled 871.7 million contracts. Conversely, the OTC Clearing sector saw an increase, with average daily cleared volumes rising by 10% to €185 billion, up from €169 billion. The category of GC Pooling experienced the most significant growth, with volumes surging by 142% to reach €158.9 billion.

Recently, Eurex appointed Robbert Booij from ABN Amro as its new CEO. Booij, previously acquainted with Eurex through his role at ABN AMRO Clearing Bank N.V., expressed his familiarity and honor in having served as the Chairman of the Eurex Exchange Council