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Cboe Global Markets Hints at Launching Ethereum Futures

Cboe Global Markets Hints at Launching Ethereum Futures

The introduction of cryptocurrency-based derivatives poses a potential catalyst for institutional investors to enter the sector, and with Bitcoin futures already available, Cboe Global Markets has revealed that they’re close to launching Ethereum futures.

Ether Futures Coming Soon

As the first exchange to launch Bitcoin futures, Cboe Global Markets has told market makers that it is working on releasing a market for Ether futures, reports Business Insider.

The launch of Ethereum-based futures could catalyze an influx of institutional capital and propel prices of the world’s second largest cryptocurrency.

Related: CBOE President Hints Toward Ethereum Futures in Light of SEC Announcement

According to Business Insider, the new investment product will be based on Gemini’s underlying Ethereum market and could launch by the end of 2018.

The introduction of the first Ethereum-based derivative could also lead to further investment products, such as an Ethereum exchange-traded fund (ETF).

Currently, the Commodities Futures Trading Commission (CFTC) is reviewing the Ether futures. The news garnered a mix response from investors and traders in the cryptocurrency community, with some denouncing it as a whale-crowded market that is too centralized in ownership.

In December 2017, Cboe President Chris Concannon hinted at the expansion of cryptocurrency-based futures, including those for Bitcoin Cash and Ethereum. In an interview with Bloomberg, Concannon said:

“We are pleased with the SEC’s decision to provide clarity with respect to current Ether transactions. This announcement clears a key stumbling block for Ether futures, the case for which we’ve been considering since we launched the first Bitcoin futures in December 2017.”

Futures exchange CME Group, which also offers a Bitcoin futures market, has announced that they are not launching a competing Ether futures product at this time.

Ethereum | ETH

Updated: August 30, 2018 at 5:47 pm PDT
$283.65 | 2.23%

Ethereum, currently ranked #2 by market cap, is down 2.23% over the past 24 hours. ETH has a market cap of $28.84B with a 24 hour volume of $1.52B.

Chart by CryptoCompare

Ethereum is down 2.23% over the past 24 hours.

Cover Photo by Sam Trotman on Unsplash

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Jonathan Kim

Jonathan Kim is a University of Washington student of Finance and cryptocurrency investor with a deep interest in the emerging industry of blockchain applications and cryptocurrency trading. His past experiences involve publishing original daily content for blockchain startups and trading cryptocurrencies using technical analysis principles.

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