Nick Chong · 4 days ago · 2 min read · Insights via Grayscale Investments
The President of CBOE Global Markets has commented on the SEC’s recent clarification on the regulatory status of Ethereum, stating that as ETH is not at risk of classification as a security it’s possible that the CBOE may be able to begin offering Ethereum futures in the near future.
CBOE President Chris Concannon hinted toward the possibility of Ethereum futures in statements released to Bloomberg on Friday, June 15, implying that fact that the SEC does not view Ethereum as a security future increases the chances of the regulatory body signing off on Ether futures.
“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.”
Ethereum Futures Loom on the Horizon
The launch of CBOE Ether futures could have a significant impact on the stability and value of the token — the launch of CBOE’s Bitcoin futures in December 2017 catalyzed an immediate end to the Q4 2017 historic run-up, which saw BTC prices approach $20,000.
Fundstrat analyst and Bitcoin proponent Tom Lee has recently commented on the negative impact the launch of CBOE Bitcoin futures has had on the price of the cryptocurrency, stating that the “gut-wrenching” weaknesses in recent Bitcoin price movements are correlated to the expiration of futures contracts:
“Bitcoin sees dramatic price changes around CBOE futures expirations. Overall, Bitcoin has fallen 18 percent in the 10 days prior to CBOE contract expiration … A broader observation is there is significant volatility around these expirations”
CBOE President Chris Concannon, however, remains optimistic about Bitcoin futures, denying any impact futures contracts may have on the value of BTC in statements released to CNBC:
“While we are excited about our recently launched Bitcoin futures, the notion that they have materially affected the bitcoin price overstates their influence and ignores other critical facts … the fall of Bitcoin can be more easily explained by other factors such as the recent regulatory scrutiny around the globe, steps by government tax collectors, the rise of other cryptocurrencies, and declining media interest in the asset.”
The launch of CBOE Ethereum futures could potentially negatively impact ETH values — but it’s similarly possible that the availability of ETH futures contracts could herald a maturation of the cryptocurrency market. It’s worth noting that ETH futures have been available for over one month already in the UK without significantly impacting the price of the asset.