CME Group Introduces Dual Crypto Investment: ETH/BTC Futures
Bitcoin Bulls Struggle After Breaking $30K. Where to Next?
CME Group, a major figure on the global derivatives scene, recently announced the upcoming launch of Ether/Bitcoin Ratio futures. The scheduled date is July 31, pending regulatory approval. This groundbreaking contract offers individuals the opportunity to invest in both BTC and ETH at the same time, making the investment process more convenient and accessible.
If you’re not familiar with futures contracts, they are agreements to buy or sell a specific asset at a pre-set price, and at a pre-set time in the future. They involve speculating on the future price of an asset. Go long if you think that the price will increase, and go short if you expect it to drop. The Ether/Bitcoin Ratio futures will be settled in cash depending on the final prices of the two cryptocurrencies.
CME Group is no stranger to cryptocurrency-related products. In 2017, it made headlines by announcing plans to introduce Bitcoin Futures, which was a significant milestone for crypto adoption by mainstream financial players. Although this announcement faced some controversy (mainly fears regarding market manipulation), CME proceeded with the launch. Over time this product facilitated the entry of institutional investors into the BTC market.
In February 2021, the company introduced Ether futures. Later that year, CME launched Micro Bitcoin and Micro Ether futures, thus opening the doors for investors with lower capital to enter the digital world. Bitcoin Euro and Ether Euro opened up in August of the same year.
Chart Analysis – BTC/USD
It looks like the battle for $30,000 is finally won and the bulls have come out on top. Literally. After moving to a high at $31,458, BTC retraced and retested the recently broken level ($30K), which is a common occurrence.
By the looks of things, this important level has turned into support. The pair dropped right onto the level and rebounded immediately, currently trading at $30,890. However, some bearish signs are present on the chart: some candles have long wicks in their upper part, the Relative Strength Index was overbought, and the Bollinger Bands are starting to move in the same direction.
These bearish signs may trigger a pullback but it looks like the pair has a good base on the $30K level. This may trigger another influx of bulls soon. The next important hurdle is $32,500, a level that was last touched in mid-2022.
