CME Group, the world’s largest derivatives market, introduced that it’s launching Solana (SOL) futures on March 17.
What this implies essentially is that merchants and traders will quickly be capable of greatest on the longer term worth of Solana however without having to purchase the foreign money, in line with the press release.
This nonetheless awaits regulatory approval, but when every part goes effectively, it should complement CME’s present providing, which already consists of Bitcoin and Etherum futures.
In the meantime, these new SOL futures might be obtainable in two sizes: a micro contract of 25 SOL and a bigger contract of 500 SOL. These contracts might be cash-settled, so the merchants will settle their features or losses in U.S {dollars} fairly than precise Solana tokens.
The worth of SOL might be primarily based on the CME CF Solana-Greenback Reference Fee, which calculates the worth of Solana as soon as each day at 4:00 p.m. London time.
Giovanni Vicioso, International Head of Cryptocurrency Merchandise at CME Group, made an announcement in regards to the launch:
“With the launch of our new SOL futures contracts, we’re responding to rising shopper demand for a broader set of regulated merchandise to handle cryptocurrency worth danger.”
He additionally added that because the Solana ecosystem is increasing, these futures contracts will assist merchants make investments and hedge dangers in a greater method.
The announcement comes on the heels of different massive traders exhibiting curiosity in crypto. CME Group has reported a median each day quantity for its crypto merchandise rising by 73% this 12 months to 202,000 contracts traded per day. Open curiosity can also be up 55%, with over 11,300 distinctive accounts actively buying and selling.
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