The CME Group, considered the largest derivatives marketplace globally, has recently announced first trades on Avalanche (AVAX) and Sui (SUI) altcoin futures trading contracts. For instance, the first trades were executed as block transactions between FalconX, a leading digital asset prime brokerage, and G-20 Group, a quantitative trading firm.
AVAX and SUI altocin futures trading: How they work
Two different-sized altcoin futures trading products are available in two sizes:
- Micro contracts of one-tenth (1/10) of a full coin for smaller, more precise exposure
- Larger-sized contracts geared toward institutions hedging against their exposure in this market.
Both products are settled in cash and use U.S. dollars as the margin currency. The central counterparty to all contracts will be CME Clearing, providing full counterparty protection to all parties, thus eliminating counterparty risk.
Key aspects of the launch include:
- Cash-settled futures based on CME CF AVAX-DKK and CME CF SUI-DKK Reference Rates
- Expanded altcoin coverage, beyond just Bitcoin (BTC), Ethereum (ETH), and Solana (SOL)
- CME Clearing will act as a central counterparty, thereby reducing bilateral counterparty exposure
- Block trading implemented for larger notional transactions
“The early support we’ve seen for our AVAX and SUI futures contracts signals that clients are actively seeking regulated products to manage price risk and pursue new opportunities across a wider range of crypto instruments. By offering these futures in both micro- and larger-sized contracts, we’re giving market participants the flexibility and capital efficiencies they need to execute their cryptocurrency investment and hedging strategies with greater precision.” – Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group
Market reaction
Following the launch of AVAX and SUI altcoin futures trading, the market response has been positive. First trades by FalconX and G-20 Group signal an active and early institutional adoption. Nevertheless, trades are backed by in-place regulatory compliance. First Bitcoin, now altcoins. Current market strength pushed the SUI price up to around 3.37 percent, trading at USD 0,99. On its side, AVAX price jumped over 2.30 percent in 24 hours, trading at USD 9,63 at the time of writing.
According to Joshua Lim, an economist at FalconX, at least two trends are impacting how digital asset traders will buy crypto: First, the introduction of new index-type exposures for the altcoin platforms; second, the Digital Asset Treasury management team from FalconX has begun accumulating digital assets (such as AVAX and SUI) on behalf of their clients.
Moreover, Jonathan Mathai, Head of Trading, G-20 Group, added: “CME Group sets the standard for regulated, institutionally compliant instruments, and firms like G-20 and FalconX represent exactly the kind of sophisticated counterparties driving these markets at scale.”