Advertisement

CME Group (CME) to Introduce Ether/Bitcoin Ratio Futures

CME Group Inc. CME is set to introduce a futures contract on the ether/bitcoin ratio on Jul 31, 2023, subject to regulatory approval.

The new contract will be cash-settled. This new product will enhance CME Group’s existing offerings in the crypto space and boost its clearing and transaction fees in the future. This new product bodes well for CME Group, as with the addition of Ether/Bitcoin ratio futures, investors can capture the exposure on both cryptos through a single trade. Moreover, this will save costs for traders looking to safeguard their positions efficiently. CME will gain from the loyalty of existing traders and attract new traders.

The new product will be settled to the value of Ether futures’ final price divided by Bitcoin futures’ final price. The listing cycle of the new product will be the same as that of Bitcoin and Ether futures contracts. Ether/Bitcoin ratio futures enhances capital efficiency in crypto trading. Being traded on a regulated exchange, Ether futures benefits from the price discovery of transparent futures. These new futures help in the 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 the 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 new futures contracts will add to CME Group's robust suite of futures and options.

The new product launched by CME Group is expected to expand the marketplace for digital assets for investors looking to trade in a regulated environment. Moreover, this new addition should assist investors with hedging in non-dollar offshore markets.

Zacks Rank & Price Performance

CME Group currently carries a Zacks Rank #2 (Buy).

Shares of CME Group have gained 9% in the past six months compared with the industry’s growth of 7.9%.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Other Stocks to Consider

Some other top-ranked stocks from the broader Finance sector are Virtu Financial, Inc. VIRT, WisdomTree, Inc. WT and Chicago Atlantic Real Estate Finance, Inc. REFI. Each of these companies presently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The bottom line of Virtu Financial outpaced estimates in two of the trailing four quarters, while it missed twice, the average surprise being 1.2%.

The Zacks Consensus Estimate for VIRT’s 2023 earnings is pegged at $2.41 per share, while the same for revenues is pegged at $1.29 billion for 2023. The consensus mark for VIRT’s 2023 earnings has moved 0.8% north in the past 60 days.

WisdomTree’s bottom line outpaced estimates in one of the trailing four quarters, met twice and missed once. The average of earnings surprises is 6.9%.

The Zacks Consensus Estimate for WT’s 2023 earnings indicates a 34.6% rise, while the same for revenues suggests 14.7% growth from the respective prior-year reported figures.

The bottom line of Chicago Atlantic Real Estate Finance outpaced the Zacks Consensus Estimate in two of the trailing four quarters, met once and missed once, the average surprise being 4.5%. The consensus mark for REFI’s 2023 earnings has moved 1.6% north in the past 60 days.

The Zacks Consensus Estimate for REFI’s 2023 earnings indicates a 36.3% rise, while the same for revenues suggests 34.2% growth from the respective prior-year reported figures.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

CME Group Inc. (CME) : Free Stock Analysis Report

Virtu Financial, Inc. (VIRT) : Free Stock Analysis Report

Chicago Atlantic Real Estate Finance, Inc. (REFI) : Free Stock Analysis Report

WisdomTree, Inc. (WT) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research