Moscow Exchange Introduces Ethereum Futures Amid Growing Crypto Interest

Russia’s largest stock market, the Moscow Exchange, is set to introduce futures contracts that track the price of Ethereum, the second-largest cryptocurrency by market capitalization. This move comes as part of the exchange's broader strategy to expand its derivative offerings and cater to the growing interest in digital assets among Russian investors.

The new futures contract will be based on an exchange-traded fund (ETF) that invests in Ethereum. Specifically, the underlying asset will be the iShares Ethereum Trust ETF from BlackRock, with the contract size being slightly less than that of the iShares Bitcoin Trust ETF (IBIT). This development follows the Central Bank of Russia’s decision to allow the offering of crypto derivatives to qualified investors in the country.

In addition to the Ethereum futures, the Moscow Exchange also plans to launch futures contracts tracking the market dynamics of U.S. government securities. This will be the first such offering in the Russian Federation, where the growing yield of American government securities has garnered significant attention from investors. The contract will be based on the iShares 20+ Year Treasury Bond ETF, with the average maturity of the bonds in the ETF portfolio being nearly 26 years and the effective duration of the government securities being 15.7 years.

This expansion of derivative offerings is part of the Moscow Exchange's strategy to provide Russian investors with access to a wider range of financial instruments. The exchange already offers contracts with underlying assets in the form of shares of funds based on major global indices, including the S&P 500, NASDAQ, and Dow Jones, as well as indexes of European and Asian stock markets. The introduction of Ethereum and U.S. Treasury bond futures further diversifies the investment options available to Russian investors, allowing them to speculate on the price movements of these assets without directly owning them.

The launch of these new futures contracts is expected to attract a broader range of investors to the Moscow Exchange, including those interested in cryptocurrencies and U.S. government securities. The exchange's decision to offer these products reflects the growing demand for digital assets and the increasing interest in U.S. debt securities among Russian investors. By providing access to these new financial instruments, the Moscow Exchange aims to enhance its position as a leading financial hub in the region and attract more investors to its platform.