German derivatives exchange Eurex has expanded its portfolio by listing Ethereum-based futures and options index products.

Eurex, known for trading European-based derivatives, has introduced these new index products in response to substantial trading and hedging demand from institutional and professional customers.

In a recent announcement, the Deutsche Börse-backed derivatives exchange revealed that its new offering, FTSE Ethereum Index Futures and Options, will launch on August 12. This follows the 2023 introduction of FTSE Bitcoin Index Futures and Options.

“There is significant trading and hedging demand from institutional and professional customers, as reflected in record trading volumes in derivatives and other investment products.” – Eurex Exchange

The new options and futures will be available in both EUR and USD, based on the FTSE Ethereum Index. Each contract will represent 10 ETH (approximately $35,000 as of now). Both contracts will be cash-settled and will expire on the last Friday of each month.

The FTSE Ethereum Index was developed by FTSE Russell in collaboration with Digital Asset Research. It aggregates data from vetted assets and exchanges to comply with EU Benchmarks. The final settlement rate for the contracts will be determined using a volume time-weighted average of the FTSE DAR Digital Asset Price over a 15-minute period prior to the fixing time.

This listing comes on the heels of reports that the U.S. Securities and Exchange Commission may soon approve spot Ethereum exchange-traded funds (ETFs) for trading on American markets starting July 23. Projections estimate that these ETFs could attract inflows of up to $5 billion in the first six months, potentially reaching $20 billion within the first year.

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