Back to top

Image: Bigstock

CME Group (CME) to Launch Ether Futures to Boost Crypto Trading

Read MoreHide Full Article

CME Group Inc. (CME - Free Report) is set to introduce a futures contract on ether, the world’s second-largest cryptocurrency by market value in February 2021, subject to regulatory approval.

The new contract will be cash-settled. Ether is based on formidable blockchain technology and the CME CF Ether-Dollar rates will provide a standardized reference rate and spot price index to bring confidence to any trading strategy. Major cryptocurrency exchanges Bitstamp, Coinbase, Gemini, itBit, and Kraken provide the pricing data to bring dependable and regulated rates to the market.

Building on the success of Bitcoin futures and options, CME Group will add Ether futures to the cryptocurrency risk-management solutions available to trade in February. This addition is expected to furnish the clients with a valuable tool to trade and hedge this growing cryptocurrency.

Ether futures enhances capital efficiency in crypto trading. Being traded on a regulated exchange, Ether futures gets the benefit of price discovery of transparent futures. These new futures help in overall management of cryptocurrency risk.

CME Group continues to focus on driving growth and new customer acquisition by expanding, innovating and scaling its core offerings, and increasing participation from non-U.S. customers. This is achieved by expansion of its global sales team, cross-selling of products, expansion of the existing benchmark products, product and service launches and deepening of open interest in core futures and options offerings. The company launched bitcoin options and options on SOFR in January 2020.

The newly futures contracts will add to CME Group's robust suite of futures and options.
 
CME Group exchange consists of designated contract markets for the trading of futures and options contracts. It enables clients to trade futures, options, cash and over-the-counter (OTC) markets and optimize portfolios. It focuses on maximizing futures and options growth globally, diversifying business and revenues, and delivering unparalleled customer efficiencies and operational excellence.

Shares of this largest futures exchange in the world in terms of trading volume as well as notional value traded have declined 9.4% in the past year against the industry’s increase of 9.6%. Nonetheless, the company’s policy to ramp up its growth profile and capital position should help shares higher regain momentum.

 

The stock currently carries Zacks Rank #4 (Sell).

Stocks That Warrant a Look

Some better-ranked insurance stocks from the same space include AXOS Financial, Inc (AX - Free Report) , OTC Markets Group Inc. (OTCM - Free Report) and Evertec (EVTC - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AXOS Financial surpassed earnings estimates in each of the last four quarters. It has a trailing four-quarter earnings surprise of 20.85%, on average.

OTC Markets surpassed bottom-line estimates in three of the last four quarters. It has a trailing four-quarter earnings surprise of 11.96%, on average.

Evertec surpassed earnings estimates in three of the last four quarters. It has a trailing four-quarter earnings surprise of 17.87%, on average.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>