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.
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.
Launching futures contracts on a cryptocurrency where 70% of the coins outstanding were known to be in the hands of fewer than 100 people, which may well have been borne out of an unlawful securities offering, is unacceptable. https://t.co/hTE4mAGZfB
— Preston Byrne (@prestonjbyrne) August 30, 2018
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.
Cover Photo by Sam Trotman on Unsplash
Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.