Frequently asked questions: Cryptocurrency futures

Micro Bitcoin Euro and Micro Ether Euro futures are now available to trade, sized at 1/10 of a bitcoin or ether per contract. These new contracts are cash-settled and based on the CME CF Bitcoin-Euro Reference Rate and CME CF Ether-Euro Reference Rate, respectively, which serve as once-a-day reference rates of the euro-denominated price of bitcoin and ether.

For product specifications, see question 15.

The CME CF Bitcoin-Euro Reference Rate and CME CF Ether-Euro Reference Rates are a once-a-day reference rates of the fiat price of a specific cryptocurrency. The rates are calculated using aggregated cryptocurrency trade activity from major spot exchanges during an explicit calculation window. Calculation rules are geared towards maximum transparency and replicability in the underlying spot markets. 

The Euro Reference Rates and Real-Time indices are not converted from USD rates.

Daily settlement for the EUR- and USD-denominated contracts are based on their respective volume-weighted average price (VWAP) of CME Globex trades between 2:59:00 p.m. and 3:00:00 p.m. Central time (CT) rounded to the nearest tradable tick.

A fixing price will be available for the EUR-denominated contracts. Such fixing prices are for reference only and will be based on the 30-minute VWAP of CME Globex trades taken between 3:30 p.m. and 4:00 p.m. London time for the respective contract.

The final settlement value of each futures contracts is based on the underlying CME CF Cryptocurrency Reference Rate at 4:00 p.m. London time on the expiration day of the futures contract.

All Cryptocurrency futures fees are charged in U.S. dollars. Micro Bitcoin Euro and Micro Ether Euro futures initial and maintenance margins will be processed in euros.

Ether/Bitcoin Ratio futures were launched for trading in July 2023. The contract is a cash-settled futures contract that represents the U.S. dollar price of one Ether futures contract (as described in CME Rulebook Chapter 349) to the U.S. dollar price of one Bitcoin futures contract (as described in CME Rulebook Chapter 350). This ratio is multiplied by $1,000,000 to determine the notional contract size. The contract is a single trade on the relative performance of ether and bitcoin; it does not trade the Ether and Bitcoin futures legs.

For product specifications, see question 15.

The contract may be interpreted as representing the number of bitcoin needed to buy one ether. Consequently, an investor who believes that ether will outperform/underperform bitcoin may buy/sell the contract. Consider the following scenarios: 

For these scenarios, assume a price of $2,405 for ether and $43,965 for bitcoin

Current ratio is 0.054703 ($2,405 ÷ $43,965), notional value of $54,703

Scenario 1: A trader expects ether price to rise 5% and the bitcoin price to remain the same; trader buys the contract at $54,703.

If ether rises 5% as expected with bitcoin staying the same, the trader would sell the contract for $2,525 (ETH +5%) ÷ $43,965 (BTC same) = 0.057438 for a notional value of $57,438. The result: the trader makes $2,708 ($57438 – $54,730) on the trade.

Scenario 2: A trader expects the ether price to remain the same and the bitcoin price to fall 10%; the trader buys the contract at $54,703.

If bitcoin falls 10% as expected with ether staying the same: $2,405 (ETH same) ÷ $39,569 (BTC -10%) = 0.060781, for a notional value of $60,781. The trader makes $6,078 ($54,703 – $60,781) on the trade.

Final settlement price of the Ether/Bitcoin Ratio futures shall be determined by the final settlement prices of the Ether futures contract (ETH) and the Bitcoin futures contract (BTC) of the same contract month. It shall be calculated by the final settlement price of the Ether futures divided by the final settlement price of the Bitcoin futures, rounded to the nearest 0.000001.

Daily settlement for Ether/Bitcoin Ratio futures will be the daily settlement of the Ether futures and Bitcoin futures divided by each other, rounded to the nearest, tradeable tick, 0.000005. For example, if ETHM3 settled at 2,410.50 and the BTCM3 settled at 43,745, the ETH/BTC Ratio futures for the June contract derives a price of 0.055092. See question 20 for more detail on the daily settlement procedures for Ether and Bitcoin futures.

CME Group lists all possible combinations of the listed months. The ratio will use only the same month, e.g., the Ether futures contract for May2024 divided by the Bitcoin futures contract for May 2024. Monthly contracts are listed for six consecutive months, quarterly contracts (March, June, Sept., Dec.) are listed for four additional quarters and a second Dec. contract if only one is listed.

Cryptocurrency futures from CME Group are based on and settle to their corresponding CME CF Reference Rate, which aggregates trading activity across major cryptocurrency spot exchanges between 3:00 p.m. and 4:00 p.m. London time.

*Ether/Bitcoin Ratio futures come to final settlement based on the final settlement prices of the Ether futures contract (ETH) and the Bitcoin futures contract (BTC) of the same contract month

To trade Cryptocurrency futures offered by CME Group, you need an account with a futures broker that is licensed to execute futures trades. In the derivatives business, brokerage firms are known as either a futures commission merchant (FCM) or an introducing broker (IB). Use the Find a Broker tool to view a list of brokers that offer clients access to trade Cryptocurrency futures. Once the account is set up for cryptocurrencies and funded, you are ready to trade.

If you have an existing relationship with a futures broker and do not see CME Group Cryptocurrency futures tickers on your trading platform, reach out to your broker to enable trading. If you do not have a futures brokerage account, please see the previous question.

See the full list of Independent Software Vendors (ISV).

Additionally, Cryptocurrency futures trading is supported via the CME Globex platform (which facilitates a central limit order book) and block trade submission for clearing via CME ClearPort and CME Direct.

No. You do not need a digital wallet because Cryptocurrency futures are financially settled and therefore do not involve the exchange of the underlying coin/token.

Yes. Eligible contract participants can trade blocks and EFRPs (Exchange for Related Positions) bilaterally or through a broker/ECN. Blocks can be negotiated pursuant to CME Rule 526, while EFRP transactions are covered by CME Rule 538.

On-screen trading is available through CME Globex, our electronic trading platform, 23 hours per day beginning Sunday evening at 6∶00 p.m. Eastern time (ET) and ending at 5∶00 p.m. ET Friday afternoon, with a one-hour maintenance break Monday through Thursday between 5:00 p.m. and 6:00 p.m. ET.

Yes, except for the euro-denominated and Ether/Bitcoin Ratio contracts, our Cryptocurrency futures are BTIC-eligible. Find out more about Basis Trade at Index Close (BTIC)-eligible Cryptocurrency futures.

Yes, Cryptocurrency futures are EFP/EFRP eligible pursuant to CME Rule 538.

Daily settlement for our standard USD- and EUR-denominated contracts are based on their respective volume-weighted average price (VWAP) of CME Globex trades between 2:59:00 p.m. and 3:00:00 p.m. CT rounded to the nearest tradable tick. Our available Micro Cryptocurrency futures contracts are settled to the settlement prices of the corresponding standard contracts.

Additionally, a fixing price is now available for the EUR-denominated contracts. Such fixing prices are for reference only and are based on the 30-minute VWAP of CME Globex trades taken between 3:30 p.m. and 4:00 p.m. London time for the respective contract.

For Ether/Bitcoin Ratio futures, the daily settlement will be the daily settlement of the Ether futures and Bitcoin futures divided by each other. For example, if ETHM3 settled at 1896.50 and the BTCM3 settled at 30.705, the ETH/BTC Ratio futures for the June contract derives a price of 0.061765.

Yes, Cryptocurrency futures are subject to price limits on a dynamic basis. At the commencement of each trading day, Cryptocurrency futures are assigned a price limit variant, which equals a percentage of the prior day’s Exchange-determined settlement price, or a price deemed appropriate by the GCC. During the trading day, the dynamic variant is applied in rolling 60-minute look-back periods to establish dynamic lower and upper price fluctuation limits as follows:

• The dynamic variant is subtracted from the highest trade and/or bid price during a look-back period to establish the lower price fluctuation limit.
• The dynamic variant is added to the lowest trade and/or offer price during a look-back period to establish the upper price fluctuation limit.

The final settlement value is based on the underlying CME CF Cryptocurrency Reference Rate at 4:00 p.m. London time on the expiration day of the futures contract.

The final settlement price of the Ether/Bitcoin Ratio futures shall be determined by the final settlement prices of the Ether futures contract (ETH) and the Bitcoin futures contract (BTC) of the same contract month. It shall be calculated by the final settlement price of the Ether futures divided by the final settlement price of the Bitcoin futures, rounded to the nearest 0.000001.

Position limits are the maximum amount of contracts that a client may hold in the front month. The limits include both client’s standard and Micro contract holdings, where Micro contracts held are expressed in equivalent standard-sized contracts.

For example, an open position in ETH (Ether) futures will count as one contract toward the limit, while an open position in a MET (Micro Ether) futures contract will count as 1/500 of a contract:

Assume a client is long 1,000 ETH and long 1,000 MET, in this case, 1,002 contracts (1,000 ETH + 1,000 MET/500) will go toward the position limit test.

Position limits as of July 25, 2024:

*Three business days before expiration the position limit for Bitcoin futures lowers to 2,000 contracts

More on position limits.

Options on Cryptocurrency futures are available on the following: Bitcoin futures, Micro Bitcoin futures, Micro Bitcoin Euro futures, Ether futures, Micro Ether futures, Micro Ether Euro futures and Ether/Bitcoin Ratio futures.

Visit cmegroup.com/cryptocurrencies for more information

Cryptocurrency futures real-time market data is available on MDP Channel 326 and Cryptocurrency futures historical data is available through CME DataMine.

Additionally, real-time market data for the underlying Reference Rates and Real-Time Indices are available through MDP Channel 213. Reference Rate and Real-Time Index historical data is available through CME DataMine.

Designed by CME Group and CF Benchmarks around the IOSCO Principles for Financial Benchmarks, the Reference Rates are a daily reference rate of the USD or EUR price of one underlying token as of 4:00 p.m. London time. The Reference Rates are representative of the trading activity on Constituent Exchanges and are geared towards resilience and replicability. More than 15 CME CF Reference Rates are available providing market participants reliable price discovery across multiple cryptocurrencies. View the full list.

Note: The Euro Reference Rates and Real-Time indices are not converted from USD rates. Euro-denominated rates follow the same methodology as the existing rates.

Find out more about CF Benchmarks, calculation methodology, Constituent Exchanges, historical data, oversight, and more.

In general, CME CF Reference Rates are published at 4:00 p.m. London time. Some cryptocurrencies (e.g., Bitcoin and Ether) have reference rates that are also published at 4:00 p.m. New York time and 4:00 p.m. Hong Kong/Singapore time.

The available CME Group Cryptocurrency futures settle to the CME CF Reference Rates that are published at 4:00 p.m. London time. More specifically:

Fees can be found on the CME Fee Schedule. All Cryptocurrency futures fees are charged in U.S. dollars.

Exchange margin requirements may be found on cmegroup.com. Please note that clearing firms may require a margin level beyond CME Clearing’s minimum requirement.

Yes, Bitcoin Euro, Micro Bitcoin Euro, Ether Euro and Micro Ether Euro futures – initial and maintenance margins are processed in euros.

Margin credits are indicative of their cryptocurrency counterparts; the estimates shown here are based on current market conditions and are subject to change.

CME Group will list all possible combinations of the listed months.

Buying the spread is equivalent to buying the deferred contract month; for example:

BTCF4 – BTCH4 is the Jan 24/Mar 24 spread. Buying this spread means buying the March 24 contract and selling the Jan 24 contract.

If you are long the Jan 24 contract, buying the Jan/Mar spread will extend your expiration into March.

The price of the spread trade is the price of the deferred expiration less the price of the nearby expiration. After the spread trade is done, the price of the two contracts will be determined using the following convention: The nearby contract is priced at its daily settlement price on the previous day. The deferred contract is priced is nearby contract’s assigned price plus the spread price.

For example:

• Bought BTCF4-BTCH4 @-100
• Assuming BTCF4 prior settle = 9455
• Price of the two legs: sold BTCF4 @ 9455, bought BTCH4 @ 9455 + (-100) = 9355.

No, the EUR-denominated contracts will follow the same convention as the USD-denominated contracts, whereby buying the spread is equivalent to buying the deferred contract month.

In the event of a hard fork, Cryptocurrency futures shall continue to settle to the underlying CME CF Reference Rate corresponding to the original token pair. The Exchange may, in its sole discretion, take alternative action with respect to hard forks in consultation with market participants as may be appropriate.

Cryptocurrency futures are listed and cleared on CME, a U.S.-registered designated contract market (DCM) and derivatives clearing organization (DCO).

The trading and clearing of Cryptocurrency futures is regulated by the Commodity Futures Trading Commission (CFTC), the regulatory body with exclusive jurisdiction over U.S. Cryptocurrency futures markets.

As with any other derivatives product, the accounting treatment of positions in Cryptocurrency futures, and the general local regulatory treatment of trading in Cryptocurrency derivatives, may differ by country and between competent jurisdictions. Market participants are responsible for complying with all applicable U.S. and local requirements. Market participants, particularly those with no experience in trading Cryptocurrency derivatives, should seek professional counsel as necessary and appropriate to their circumstances.

Cryptocurrency futures are listed on CME and reside in the IOM Division.

We are using a range of risk management tools related to Cryptocurrency futures. CME Clearing retains the right to impose exposure limits, additional capital requirements and other targeted risk management tools if we see exposures that we determine might become a concern in any product or market.

Note that our Cryptocurrency futures products are cash-settled futures contracts. As such, margins will be set in line with the volatility and liquidity profile of the product.

Further, we also have the ability for clearing members to impose trading or exposure limits on their clients. Other tools may include increased capital or margin requirements in cases where exposures increase beyond reasonable levels.

Cryptocurrency futures fall into CME’s Base Guaranty Fund for futures and options on futures.

For all other inquiries regarding margins or CME Clearing’s approach to risk management, please contact clearing.riskmanagement@cmegroup.com.

To access CME Globex, you must have a relationship with a CME Clearing member firm.

There are three ways to access the data:

• CME Group website
• Market Data Platform (MDP) through channel 213
• CME DataMine

There are three ways to access the data:

• CME Group website
• Market Data Platform (MDP) through channel 213
• CME DataMine

Delayed quotes are be available on cmegroup.com. You can also access quotes through major quote vendors.