Less than a year after the launch of the first Futures contract for Bitcoin, Ethereum could be the second crypto-currency that is traded on regulated futures exchanges.
It is clear that the Chicago Board Options Exchange (CBOE), the same platform that launched in December 2017, Bitcoin Futures, waiting for the green light, the Commodities Futures Trading Commission (CFTC), to start the Ethereum options until the end of 2018.
The CBOE is your ETH-Zurich agreements to the Gemini Cryptocurrency Exchange Market is the Foundation you are using for your Bitcoin Futures build.
After the American stock exchange, had declared a regulator, the SEC, formally, that Ethereum has not been classified in June as the value of paper that seemed to be the way for the imminent launch of the ETH Futures are open to.
To be greeted this time, CBOE President Chris Concannon the decision and said that the ETH had contracts since the end of 2017, a topic of conversation:
„We are pleased with the decision by the SEC to provide clarity in relation to the current Ether-transactions. This announcement clears a major stumbling block for the Ether-Futures, the case, for we have made since the launch of the first Bitcoin Futures in the December 2017’s thoughts.“
Only three months later, there are very real murmurs that this could come to success, similar to the build-up to the possible launch of Bitcoin Futures in the year 2017.
The CBOE has indicated Cointelegraph that you are busy, in fact, with Ethereum Futures and Concannons Interview with Quarts in the June highlights, where he pointed out their thoughts on the Cryptocurrency and the possibility of a Futures contract:
„Ether is one of the most liquid crypto currencies out there. Together with Bitcoin, the demand in ethers is much higher than any other Cryptocurrency on the market. We will try in the near future, to start Futures, but there is a process we must go through before we announce any such Start. This process is something with which we want to have a detailed conversation with the CFTC and are certainly steps in this process of companies and make sure that everyone is on to the next product that we will announce.“
According to Concannon, a significant demand for Ether-Futures. After the successful launch of Bitcoin Futures, the CBOE hopes to use the same product design and the same structure, and all the Futures of the crypto-currency to be applied, which can be considered in the future.
The CBOE would give no further Details because the relevant information would be announced in due time.
can can expect to happen During the final Details, when we find that this Ether-Futures are to be placed started, still open, had currencies of the possibility of this new offers a neutral impact on different Crypto.
The ETH course turned from a slight break-in on 31. August onwards, the result of these first messages. The price of Bitcoin, showed a similar pattern of movement, with a strong increase on the same day.
crypto market 31.08.-01.09.2018. Source: coin360.io
As a reaction to the first reports of the CBOE plans to Fund strate’s co-founder Tom Lee told Business Insider, Ether-Futures would initially have a negative impact on the price of the crypto currency:
„Since December of this year, if you would be in any aspect of crypto pessimistic, but the underlying did not want to have, you could close BTC short. You can now shorten Ethereum, which means that the net-Short Position in BTC would fall in Futures.“
Good or bad?
It is to predict just what will do the market, and this is especially true for crypto-currencies. Big movements like these of established financial institutions seem to affect the price of crypto-currencies.
Cointelegraph have a voice with the senior market analyst at eToro, Mati Greenspan, in order to obtain an informed opinion about how the introduction of Ether-Futures on the price of the crypto currency.
Greenspan was optimistic and said that the Wall Street working hard to build bridges to the crypto market and the Start of Ether Futures as a crucial next step.
expressed While some people in social media, concerns that aggressive short-hurt-circuits the value of Ether, a bot Greenspan to this point, a counter-argument:
„The ability to come to shortly, is a crucial component of the pricing. This is ultimately a healthy thing for the market.“
In addition, Greenspan believes that an Ether-Futures contract on the back of the Cryptocurrency in the focus, which could attract new investors with deep pockets. The eToro Analyst is of the opinion that this could also be for other crypto-currencies of importance:
„crypto-prices are strongly correlated with each other. Everything that is good for Ethereum, it should be good for Bitcoin, and Vice versa. Until now, the Futures on Bitcoin for the Rest of the market is relatively small and insignificant, but as the interest of institution changes institutional investors, we should see higher volumes and new ways to act on this.“
While Greenspan, a far more optimistic prediction of the coming things, there are those who have a more cautious view on the possible introduction of Ether-Futures.
Phillip Nunn, CEO of the Wealth Chain Capital, told Cointelegraph that certain investors have the potential to shorten Ether. This could have serious consequences for the company, the ICOs launched on the Ethereum block Chain.
Nunn compares the introduction of BTC Futures, about 30 years ago with the foreign exchange markets, where the Futures markets have a major influence on the markets had:
„in 2018, has changed the behavior of the crypto-strong, mainly due to the advent of Bitcoin Futures, the Charts were different and there was clearly market manipulation, and“ whales“ to dominate the market. Someone earned a lot of money. It is comparable with the foreign-exchange markets in the ’80s and‘ 90s, where it was easy to influence the markets through Long and Short positions.“
In addition, notes Nunn, the risk of Futures for companies with ERC20-Token money is collected on:
„I’m on different levels of the ETH. first of all, think of their market capitalization is much smaller than that of Bitcoin and I see that the ETH Futures could bring under 130 Euro, maybe even $ 90 Euro. Add to that that 95% of the ICOs earn money with ERC20-Token in ETH, if an ICO has amassed 15 million euros, and in the ETH holds, this suddenly cut in half, and I think it will cause sales of these companies to BTC or FIAT, in order to secure their assets.“
A different result?
While crypto-Futures – Bitcoin has been promoted, it would be difficult to draw conclusions from the introduction of BTC Futures in December 2017.
Shortly after the CBOE and the Chicago Mercantile Exchange (CME), their respective Futures had launched the offer, reached Bitcoin all-time high of slightly more than 16,000 Euro, before a humiliating correction in the markets in the red engine, and they staggered on for months.
While various factors played a role in the significant decrease in the crypto currency crisis, but it difficult life, when it came time to judge how BTC Futures to affect the markets and prices are influenced.
In July, CME indicated that it would not launch any other crypto-currency-Futures-offers. There were, however, published data that showed that the average daily volume of BTC Futures had risen in the first quarter of 2018, to 93 percent.
in view of the growth of the number of the BTC Futures contracts in mid-2018, one could assume that this type of Finance offered in the field of crypto-currency is increasingly sought-after.
nevertheless, in spite of the possible launch of Ether-Futures will be a room that will be monitored in the coming months. As Nunn summed up in his comments to Cointelegraph, was the Price earlier in the crypto area as well as a slap in the Dark:
„of Course I could be wrong and it could rise to 1,000 euros, but it seems that the Futures strategies serve to smother the real growth of crypto. This was certainly the case of Bitcoin, because all of the Price predictions are now null and void.“