Is CME Group Driving Ethereum’s Future?

Is CME Group Driving Ethereum’s Future?

For some time now, investors and crypto enthusiasts have been anticipating futures for Ethereum. This expectation has been stifled though as regulatory uncertainty is ripe in the air in regards to the second biggest cryptocurrency.

Although a new report from The Block suggests that one of the worlds biggest financial exchanges, CME Group is getting ready to launch a new product for Ethereum. 

Ethereum’s Future

The Chicago-based firm that famously launched Bitcoin futures near the peak of $20k in 2017, is apparently changing up its reference rate and index for Ethereum which could mean that futures are on there way. According to Frank Chaparro from The Block, this change is being done to “prep for an Ether” vehicle.

The report claims that cash-settled futures like the CME’s crypto contracts can actually be manipulated, requiring a robust index to mitigate such a risk. This recent change may be taking place in order to convince regulators to approve of Ethereum-related products.


Ethereum futures have just gained support from some important people in the crypto space such as the Chief Executive of the crypto startup exchange ErisX, Thomas Chippas. In a ten page letter given to the United States Commodity Futures Trading Commission (CFTC), Chippas emphasised the need for an Ethereum vehicle.

The CEO claims that unlike some crypto projects, Ethereum has actual use cases, proper institutional involvement and a real & vibrant community. He went on to write that the CFTC supporting Ethereum would align with the agencies commitment to “foster open, transparent, competitive, and financially sound derivative trading markets.”

Chippas’ words may be slightly biased though as his firm is getting ready to launch Ethereum Futures as we speak.

Speaking to CoinDesk, an unknown CFTC official said earlier this year that those at the governmental organisation are amicable towards Ethereum. 

“A derivatives exchange comes to us and says ‘we want to launch this particular product.’ … If they came to us with a particular derivative that met our requirements, I think that there’s a good chance that it would be [allowed to be] self-certified by us.”

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