German derivatives exchange Eurex has announced the expansion of its portfolio, listing Ethereum-based futures and options index.
Eurex Exchange, known for European derivatives trading, cited significant trading and hedging demand from institutional and professional customers for the new listings.
The Deutsche Börse-backed exchange unveiled that its new product, FTSE Ethereum Index Futures and Options, will launch on Aug. 12. This follows the 2023 introduction of FTSE Bitcoin Index Futures and Options.
"There is significant trading and hedging demand from institutional and professional customers, as reflected in record trading volumes in derivatives and other investment products," stated Eurex Exchange.
These options and futures will be available in EUR and USD, based on the FTSE Ethereum Index. Each contract will represent 10 ETH, roughly $35,000 as of press time.
The exchange said both contracts will be cash-settled, expiring on the last Friday of each month. The index, created by FTSE Russell with Digital Asset Research, aggregates data from vetted assets and exchanges to comply with EU Benchmarks.
Eurex adds that the final settlement rate for the contracts will be determined using a "volume time-weighted average of the FTSE DAR Digital Asset Price over a 15-minute period prior to the fixing time."
The listing follows reports that the U.S. Securities and Exchange Commission is poised to approve spot Ethereum exchange-traded funds (ETFs) for trading in American markets starting Jul. 23. Projections estimate these ETFs could attract inflows of up to $5 billion in the first six months and potentially reach $20 billion within the first year.
