Ethereum futures (Ether futures) let traders bet on where Ethereum’s price is headed without having to own any ETH directly. Futures trading can seem quite technical and daunting on the surface, but it’s actually much less complicated than it seems. You don’t need to be a Wall Street expert to get the basics.
Futures create a way to get in on the action and interact with a market without investing in the coin. They allow traders to speculate on the price of assets with different benefits and disadvantages than spot trading. These days, Ether futures are traded on many top platforms, allowing traders to hedge against price volatility or speculate on price movements.
Let’s dig into this term and see how Ethereum futures work.
Understanding Ethereum Futures
To better understand how Ethereum futures work, we need to start by understanding crypto futures in general. Futures are financial derivatives, which simply means that they derive their value from an underlying asset like Ethereum. They allow traders to bet on the future price of the asset instead of its current market value. Futures were originally used for commodities like oil, wheat, or gold, but they are now used for all kinds of different underlying assets including cryptos.
There are two main types of Ether futures. The first is the traditional kind, with a fixed expiration date. These are offered by regulated exchanges like CME.
The second type of ETH futures is the perpetual future, which never expires, and is popular on platforms like Binance and Bybit. Both let you speculate on the price of ETH, but they behave differently.
Most Ether futures are cash-settled, which means that you never take ownership of real ETH. However, this is not always the case. If the contract is physically settled, you will actually receive or deliver ETH based on what you chose.
Let’s consider an example.
You believe that ETH will rise from $3,000 to $3,500. Based on this, you can buy an Ethereum futures contract right now. If the price goes up, you profit from the price change. If it doesn’t, you take a loss.
Crypto futures work the same way for other coins like Bitcoin or Litecoin. Bitcoin futures were launched by CME back in 2017, and Ethereum futures started cropping up a bit later.
As of 2025, ETH and BTC futures are among the most traded crypto derivatives.
Futures can be settled in two ways:
- Physically (you receive the asset)
- Cash-settled (you just get the profit or loss based on the price difference)
CME’s ETH futures are cash-settled, which means that no actual ETH is being transferred. This is just money changing hands based on the contract’s result.
How Ether Futures Work
At their very core, Ethereum futures are bets on the future direction of ETH’s price. The idea is pretty simple, but there is much more going on under the hood. Let’s look a bit closer.
Expiration Dates
Traditional Ethereum futures contracts come with an expiration date. This is the day the contract “settles.” When the contract settles, one of two things happens:
- The position closes, and the profits and losses are paid out (cash-settled)
- In rare cases, you receive ETH (physically settled)
CME’s Ether futures, for example, expire monthly, typically on the last Friday of each month. This means that you can hold a position up until then or choose to close it early.
Perpetual futures don’t have expiration dates.
Contract Size
Each CME Ether futures contract represents 50 ETH. That is a big contract worth around $150,000 in ETH at today’s prices.
Because of its value, retail traders often prefer micro futures, which are also offered by CME Group and other crypto exchanges, which represent just 0.1 ETH per contract.
How Traders Use Futures
Smart futures traders don’t just make random, wild bets and hope they make a fortune. Here are the three most common ways traders use ETH futures:
| Strategy | How It Works | Who Uses It | Example |
| Speculation | Traders bet on whether ETH’s price will rise (go long) or fall (go short) | Retail traders and short-term investors | Go long at $2,000. When ETH rises to $2,200, you will profit $10,000 (50 ETH x $200). |
| Hedging | Protects against downside risk if you already own ETH. You short ETH futures to offset potential losses | Long-term holders, miners, and businesses paid in crypto | You own 50ETH worth $100,000. To hedge against a 20% drop, you short one futures contract. ETH falls 20%, the spot position loses $20,000, but futures gain around $20,000. You are covered. |
| Arbitrage | Exploits price differences between spot and futures markets (or between exchanges) | Institutional traders and professional firms | Spot ETH is $3,000. Futures are $3,200. Buy spot and sell futures. Hold until convergence to make a profit. |
Margin and Leverage
You don’t always need to pay the full value of the contract upfront. Instead, you can use leverage, which lets you control a larger position with less capital. The portion paid is called the margin.
But be cautious: leverage cuts both ways. It can magnify your gains, but it can also magnify your losses.
The History of Crypto Futures
The journey of crypto futures began in December 2017. At the time, two major U.S. exchanges introduced Bitcoin futures:
- CBOE (Chicago Board Options Exchange) was the first to launch Bitcoin futures on December 10. However, the demand was declining fast, so CBOE decided to discontinue its offerings in March 2019.
- CME (Chicago Mercantile Exchange) followed closely after CBOE. It launched its Bitcoin futures on December 18, 2017. Unlike CBOE, CME’s futures gained a lot of traction. CME continues to lead the crypto derivatives market.
Building on its momentum, CME started expanding its offerings. In February 2021, the platform introduced Ether (ETH) futures, providing investors with a regulated platform to make profits from the coin’s price movements.
Press Release: CME Group to Launch Ether Futures on February 8, 2021
Ether futures to expand CME Group’s robust crypto derivatives offering for institutional traders alongside CME Bitcoin futures. Read more.— CME Group (@CMEGroup) December 16, 2020
Later, in December 2021, CME launched Micro Ether futures, which is sized at one-tenth of one Ethereum.
As of May 2025, CME continues to expand its suite of crypto derivatives. On May 20, 2025, they launched the new XRP futures for trading. The first trade, a block, took place on Sunday, May 18.
CME remains the largest derivatives trading platform on the market. In addition to it, other platforms like Binance, Bybit, and OKX have developed their own crypto futures markets, offering contracts on many cryptocurrencies including Solana, Litecoin, and Dogecoin.
Pros and Cons of Trading Ethereum Futures
Trading Ether futures is different from buying ETH. This has its set of advantages, but it also creates some serious risks you should be aware of.
Pros
- No need to hold crypto directly
With futures, you don’t need a crypto wallet or private keys. You are just betting on the prices. This appeals to investors who don’t want to have actual crypto holdings and deal with custody.
- Leverage
Many platforms now will let you trade with leverage, which means that you can open larger positions with less capital. On CME, margin requirements are lower than the full ETH price, while on platforms like Binance and Bybit, leverage can go as high as 100x (though this is extremely risky).
- Hedge your ETH exposure
If you already hold some ETH and are worried about short-term drops, you can short ETH futures and hedge your risk.
- Regulated access (for institutions)
CME’s ETH futures are regulated in the U.S., so institutions can trade crypto exposure without touching unregulated spot exchanges.
- Nearly 24/7 exposure
Crypto futures can react to market news instantly, even after hours. On platforms like CME Globex, trading is nearly 24/7 from Sunday to Friday, while most others never pause trading.
Cons
- No ownership of ETH
Unless you find a cash-settled contract, which is rare, you won’t actually hold Ethereum. This means that you can miss out on benefits like staking rewards or using ETH in DeFi.
- Leverage can go both ways
Leverage is risky. It can boost your profits, but it can also increase your losses. A small dip in Ethereum’s price could liquidate your entire position if you are over-leveraged.
- Expiration risk
Unlike perpetual futures, most ETH futures contracts expire monthly or quarterly. If your position isn’t closed, it settles, potentially at a loss if you misjudged the timing.
- Complexity
Futures are more complicated than just investing in crypto or holding it. They involve contract specs, margin calls, and settlement dates. They can be challenging for beginners.
- Volatility
ETH is still very volatile. When you pair this with leverage, the risks are pretty intense.
Popular Ethereum Future Exchanges
If you want to trade Ether futures, choosing the right platform to do this is very important. Trading volume, leverage, fees, and settlement types can vary greatly between platforms.
It is also important to know that only CME offers traditional, regulated Ether futures with expiration dates. Most crypto exchanges offer perpetual futures, which don’t expire but still let you trade ETH price movements.
Let’s consider your top choices.
1. CME Globex
The Chicago Mercantile Exchange is a leading global derivatives marketplace these days. It offers cash-settled Ether futures contracts, aimed primarily at institutional investors.
In April 2025, CME reported a 239% year-over-year increase in Ether futures volume. This contributed to a total average daily volume of 183,000 contracts across all crypto derivatives.
2. Binance
Binance is the largest crypto exchange by trading volume in the world. It offers ETH/USDT perpetual futures with up to 125x leverage, which makes it a popular choice with traders.
As of May 2025, Binance’s ETH/USDT perpetual contract had a 24-hour trading volume of over $20.9 billion. The platform supports deep liquidity and advanced charting tools, as well as many risk management options.
Now, Binance’s perpetual contract isn’t technically a “future” since it doesn’t have an expiration date. It’s a perpetual futures contract, a subtype of futures that rolls over indefinitely. Binance currently doesn’t offer traditional futures with expiration dates.
3. Bybit
Bybit is a fast-growing crypto derivatives exchange known for its competitive fee structure and simple interface. It also offers ETH/USDT perpetual futures with leverage options up to 100x. It currently doesn’t offer traditional futures with expiration dates.
As of May 2025, Bybit’s ETH/USDT perpetual contracts had a 24-hour trading volume of around $3.4 billion. The platform is most popular among retail and professional traders who seek a strong selection of trading pairs and deep liquidity.
4. OKX
OKX is another crypto exchange that offers many different trading products, including spot, futures, and options. It provides ETH/USDT perpetual futures with flexible leverage options, making it great for both small and larger traders.
As of May 2024, OKX reported a total 24-hour derivatives trading volume of around $26.9 billion, with a significant portion coming from ETH futures.
What Are Ethereum Futures Options?
Ethereum futures options are a type of financial contract that gives you the right, but not the obligation, to buy or sell an Ether futures contract at a certain price before a specified date. Let’s break them down a bit.
Options are derivatives, just like futures. But, instead of locking you into a trade, they offer more flexibility. There are two main types:
- Call options that give you the right to buy the underlying asset
- Put options that give you the right to sell the underlying ETH futures contract
These options are typically used by traders who want to manage risk, hedge positions, or speculate on the coin’s volatility without being forced to follow through with the trade in case the conditions change.
Ethereum Futures – Our Verdict
Ethereum futures offer flexibility and the potential for leverage, but they are not for everyone. If you are looking to make a long-term investment, buying and holding ETH might make more sense. However, if you want to trade short or medium-term price movements, hedge your holdings, or simply try something new, futures can be a powerful tool.
But remember: high potential rewards come with high risks. If you do decide to invest in Ether futures, take the time to understand the platform and the strategy before you dive in.
FAQs
Are Ethereum futures the same as buying ETH?
No. With Ether futures, you aren't buying Ethereum itself. You are speculating on a price at a future date. Most futures are cash-settled, and no ETH is ever transferred.
What is the difference between perpetual and traditional Ether futures?
Traditional futures have a set expiration date. Perpetual futures don't expire and stay open indefinitely.
Are Ether futures safe for beginners?
Not really. They can be profitable, but are also very risky and often use leverage, which can magnify losses. Beginners should study more extensively before they use real money on this.
What is the smallest amount I can trade in Ethereum futures?
This depends on the exchange. On CME, one ETH futures contract equals 50 ETH. On platforms like Binance, you can trade much smaller contract sizes.
How are Ethereum futures taxed?
This varies by country. In the United States, futures contracts are taxed differently from regular crypto trades. They may fall under Section 1256 (60/40 split of long-term and short-term gains).
How does the 'last price' affect my futures trade?
The last price refers to the most recent transaction price of an ETH futures contract. It's important because it determines the unrealized profits and losses and can trigger margin calls.
