Economist Alex Krüger is explaining why he believes CME Group’s impending Ethereum futures is extremely bullish for the second largest crypto asset by market cap.

CME Group says it will launch its Ether futures product by February 8th of 2021. The launch arrives roughly three years after CME Group introduced its BTC futures platform and right as BTC continues to break new all-time-highs.

Krüger reminds his followers just how monumental the news of CME’s BTC futures contracts was in 2017 and suggests that the same narrative could play out with ETH as we roll into the New Year.

Krüger says that as Bitcoin continues to attract institutional investors and CME notices high demand for its crypto futures products, other crypto assets could find themselves with CME futures contracts as well. He predicts that just as assets receive hefty pumps coinciding with the news that they will be available on Coinbase, assets that are announced on CME’s exchange could also begin to see similar types of price action.

“As institutional investors enter the space and demand grows exponentially, the CME would be incentivized to launch a great number of futures for crypto assets.

The CME effect could become the new Coinbase effect.”

The exchange’s announcement also suggests that CME Group intends to grow their crypto product options.

Says CME Group,

“Ether futures join the expanding suite of cryptocurrency products from CME Group providing an additional tool for market participants to hedge their digital asset risk.”

CME Group’s ETH futures contracts will have a value of 50 ETH. The contracts are quoted in US dollars per one Ether. The Ether futures will trade on CME Globex Sunday through Friday 5:00 p.m. – 4:00 p.m. CST.

Market participants will be able to exchange their positions in physical ETH for an equivalent position in CME Group Ether futures and vice versa, says the exchange.

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