Ether futures (ticker symbol: ETH) from CME Group are cash-settled contracts based on the CME CF Ether-Dollar Reference Rate (ETHUSD_RR). Launched in 2018, this daily reference rate aggregates Ether/USD transactions across major Ether spot exchanges during a one-hour calculation window, culminating in a standardized price as of 4 p.m. GMT/BST.
How the Ether Dollar Reference Price Is Calculated
- Calculation Window:
The one-hour window is divided into 12 five-minute intervals. - Volume-Weighted Medians:
Each interval's median price is derived from volume-weighted data. - Final Rate:
The 12 medians are averaged equally to produce the day's ETHUSD_RR.
Contract Specifications
| Feature | Detail |
|---|---|
| Contract Size | 50 ether |
| Quotation | USD per ether (e.g., $400 rate = $20,000 notional value per contract) |
| Tick Size | 0.25 index points ($12.50 per tick) |
| Spread Trades | $0.05 per index point ($2.50 per contract) |
| Trading Hours | Sunday–Friday, 5 p.m.–4 p.m. CT (CME Globex) |
| Block Trades | Minimum 5 contracts |
| Expiration | Last Friday of the contract month |
Exchange for Physical (EFP) Transactions
ETH futures support EFP transactions, enabling private swaps between futures and physical Ether positions. This flexibility aids risk management and arbitrage strategies.
Contract Listing Schedule
- Monthly Contracts: 6 consecutive months (e.g., January–June).
- December Contracts: Nearest two years (e.g., current + next December).
- Rollover: As one contract expires, the next sequential month is added.
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Why Ether Futures Matter
CME Group’s ETH futures expand its cryptocurrency product suite, offering traders:
- Risk Hedging: Mitigate volatility in digital asset portfolios.
- Regulated Environment: Trade with transparency on a established platform.
FAQs
Q: How is the ETHUSD_RR rate protected from manipulation?
A: The rate aggregates data from multiple exchanges during a strict calculation window, ensuring robustness.
Q: Can retail investors trade Ether futures?
A: Yes, but they must meet brokerage requirements for futures trading.
Q: Are ETH futures available for algorithmic trading?
A: Absolutely—CME Globex supports API connectivity for automated strategies.
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Q: What happens if I hold a contract at expiration?
A: Positions are cash-settled based on the final ETHUSD_RR, with no physical delivery.
Q: How does liquidity compare to spot Ether markets?
A: Futures offer deep liquidity, especially near contract roll dates, but differ from spot market dynamics.
Q: Are there tax implications for trading ETH futures?
A: Tax treatment varies by jurisdiction; consult a financial advisor for specifics.
Ether futures provide a regulated, scalable tool for institutional and sophisticated traders to navigate crypto markets. By leveraging CME Group’s infrastructure, participants gain exposure to Ether’s price movements without direct asset custody concerns.
👉 Discover how to integrate ETH futures into your portfolio
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