Futures of ethereum, the second largest cryptocurrency as per market capitalization, could launch by the end of 2018, Business Insider reported citing a person with knowledge of the situation. CME Group, the world's largest futures contract exchange, was the second to launch bitcoin futures previous year, just weeks after Cboe launched their own futures. Now, that same organization is telling market makers that it's preparing to launch Ether (ETH) futures.
The introduction of Bitcoin Futures in December 2017 apparently had a major influence on the course of the Bitcoin price. A future is an agreement to purchase and sell an asset - crypto or otherwise - on a specific data and at a specific price.
It is nearly impossible to predict the evolution of Ether's price after a giant like Cboe will launch a related futures option. A fall below this region would mean that the prices and the market would be back in the long held range and this would only mean more consolidation and more ranging in the days and weeks to come, something that most of the traders would not want, after all that they have been through over the past couple of months.
In December 2017, Cboe launched regulated bitcoin futures contract trading for the first time in history. After making a name in the crypto community for launching bitcoin futures, Cboe is now reportedly preparing to launch ETH futures. The exchange holding company previously based its Bitcoin futures on the Winklevoss's New York-based cryptocurrency exchange as well. It has been exploring the $29 billion market value cryptocurrency in many different ways, as well as experimenting with related products such as bitcoin futures. William Hinman, the Director of Corporate Finance from the SEC has said in the past that they would not consider Ethereum to be a security.
Do you agree with Tom Lee's position on the impact of ETH futures on the prices of ETH and BTC?
The news comes amid a continued downturn in ETH's fortunes, with Ethereum price 00 battling lows not seen for nearly a year.