CME Group Targets Institutional Crypto Hedging with New Nasdaq Index Futures Contract

Derivatives marketplace CME Group has announced plans to launch Nasdaq CME Crypto Index futures on 8 June, subject to regulatory review.

The new contracts will be CME Group's first market-cap weighted futures product and will be available in both micro-sized and larger-sized denominations. Financially settled at expiration, the contracts are designed to give market participants capital-efficient exposure to the top cryptocurrencies by market capitalisation through a single instrument.

As of 14 May, the underlying Nasdaq CME Crypto Settlement Price Index includes bitcoin, ether, SOL, XRP, ADA, LINK and lumens.

The launch builds on the existing partnership between CME Group and technology exchange operator Nasdaq. The contracts will be listed on and subject to the rules of CME.

Regulated crypto futures demand continues to climb

Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group, pointed to strong momentum in the firm's existing crypto derivatives suite as a driver of the new product.

"Building on our long-standing partnership, our new Nasdaq CME Crypto Index futures will offer clients a regulated, cost-effective and convenient way to hedge or gain broad-based exposure to the overall crypto market. Demand for regulated cryptocurrency futures continues to increase, with average daily volume in our suite up 43% year-to-date. As investment in this market continues, these new futures will provide another way for investors to manage their risk."

Giovanni Vicioso
Global Head of Cryptocurrency Products, CME Group

Sean Wasserman, Head of Index Product Management at Nasdaq, said the index had been constructed to deliver the governance and transparency standards institutional investors apply to other asset classes.

"As investor participation in cryptocurrencies continues to evolve, there is growing demand for benchmarks that reflect the broader market and are built with the same governance and transparency investors expect in other asset classes. The Nasdaq CME Crypto Index was designed to serve as that foundation, and the introduction of futures linked to the index is a natural extension of how index-based frameworks support market development over time."

Sean Wasserman
Head of Index Product Management, Nasdaq

Further information is available at cmegroup.com/nasdaqcrypto.

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