Big step in crypto evolution as CBOE plans to launch Ethereum futures trading
Chicago Board Options Exchange (CBOE) has set the cryptocurrency market abuzz by telling market makers that plans are in place for pushing futures of ethereum (second largest cryptocurrency as per market capitalization). The end of 2018 is the estimated period of the launch.
Bitcoin futures are already on the CBOE, which helped propel it to its highest price back in December 2017. Their upward swing has been relatively contained since the start of the year.
The addition of yet another cryptocurrency in the futures market is a positive sign for crypto-adoption and could even pave the way for increase trading in crypto and even an Exchange Traded Fund (ETF).
CBOE’s bitcoin futures were based on the NY crypto-exchange run by Cameron and Tyler Winklevoss. CBOE will base the Ethereum futures on Gemini’s underlying market.
The report published by Business Insider, outlining the CBOE communication, had a significant effect on the cryptos in the market. Ether’s price shot up by 3.5% but has fallen down since, it is currently priced at $280 as per CoinMarketCap.
In June, a financial regulator from the Securities and Exchange Commission (SEC) said that Ethereum was not a security. “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,” said Chris Concannon, CBOE Global Markets President.
Chicago Mercantile Exchange (CME), CBOE’s rival launched BTC futures trading in December 2017 as well. However, Terry Duffy CEO CME, said that ether futures won’t be going live on his venue, volatility being the main factor. “I will take a wait and see approach with Bitcoin for now” Duffy informed Bloomberg in July.
In July, the CME released a report on BTC futures. The report indicated that the average daily volume increased by a whopping 93% in the second quarter over the first quarter. Open contracts on BTC futures are in excess of 2,400 which was a 58% increase in Q1.
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