Chicago Mercantile Exchange (CME) is considering launching Solana (SOL) and Cardano (ADA) futures, days after announcing Micro-Sized Bitcoin and Ether Options.
Cardano, Solana “Bright Future”
Speaking during the CryptoCompare Digital Asset Summit on Wednesday, Payal Shah, director of crypto and assets at CME, stated that they are taking a longer look at Bitcoin and Ethereum due to day-to-day demand. growing from customers and may soon add Solana and Cardano futures.
“We are looking into it,” she said, adding that “the number of client requests for any assets other than the top coin [such as] Solana, Cardano” has grown tremendously a lot.
Shah spoke with the top-rated institutions, however, noting that they face certain obstacles when it comes to launching altcoin futures. However, Shah, who spoke with a group of top-rated institutional market participants, noted that they face certain obstacles when it comes to launching altcoin futures.
First, she noted that Bitcoin and Ethereum futures were settled on an Index. In this way, CME has contracted with five crypto exchanges while sharing real-time quotes to allow the company to decide on exact prices for Bitcoin and Ethereum futures. As such, she stated that they need to build a similar index for other cryptocurrencies, so a delay in launching any other than the top two is unlikely avoid.
She also stated that the CME is particularly concerned about the regulatory ambiguity surrounding cryptocurrencies, specifically altcoins, so some more due diligence is needed. “We need to know where to send the paperwork,” continued Shah, “do we send it to the SEC, the CFTC, to have some certainty about who is managing it?”
Last year, the Chicago-based company denied claims it was launching Dogecoin futures after a tweet from FirstSquawk, a financial news site, published misleading statements.
More Altcoin Futures Coming Soon
Shah emphasized that once all these blocks are cleared, they will start releasing new crypto products as that is definitely what their customers are asking for. “The rate at which we bring new products to market, I think will certainly continue into 2022 and 2023.”
In 2017, CME launched Bitcoin futures before introducing Bitcoin options in November 2019. In February 2021, the company then launched Ether futures before launching the contract. Bitcoin micro-futures and Ether micro-futures in May and December respectively.
On March 28, 2022, CME announced the addition of micro-sized Bitcoin and Ether options to its product suite. That said, the company is off to a good start since it started offering crypto-related products. To date, the company has processed nearly 5 million contracts and over 1.2 million futures contracts on Micro Bitcoin and Ether.