Recently, according to inside speculation, CBOE Global Markets plans to launch futures for Ether in the close future. Ethereum is by far the second largest cryptocurrency as noted by marketplace capitalization. It is known that CBOE is the exchange platform that first introduced Bitcoin futures. As it is, their new product, Ether futures, is in the process of development and it is speculated to be launched by the end of this year. After the launch of Bitcoin futures back in December, futures, which offer investors a way to bet on the future price of an asset, helped push BTC at all times highs. The US based BTC futures market, mainly composed of CBOE and CME have been more or less quiet since their launch.
Nonetheless, the launch of Ether futures on a US-regulated trade would mark an important step in Ethereum’s advancement as a cryptocurrency, thus making it possible to expand crypto trading and possibly the approval of an ETF. Chris Concannon, president of CBOE, has previously hinted at wanting to expand the company’s cryptocurrency products, stating that it is a natural development as the market continues to grow.
“We started down this road in the form of an ETF, […] A healthy market is a healthy underlying market, derivatives markets, and an ETF. That will take time.”
On the other side, at CME, CEO Terry Duffy has stated that he has no plans yet to develop Ether futures, wanting to focus on Bitcoin for the time being.
Danny Kim, head of Growth at SFOX, has commented on this new development and what it means for the market:
“Cboe’s providing will allow crypto traders to take each lengthy and quick positions in ether, and it’s some other step forward to a brand new widely wide-spread asset elegance. […] With this, I suppose the brand new investment opportunity will take crypto out of the bearish market and reverse to a brand new bull.”
As CBOE has founded its Bitcoin futures market by using the New-York exchange platform run by the Winklevoss twins as an archetype, it is speculated that this time the company will be basing its Ether futures on Gemini’s underlying market. Additionally, the inside source mentions that CBOE is waiting on the Commodities Futures Trading Commission to get acquainted and used with the new product before its launch. Back in June, a SEC director has alluded that the commission doesn’t believe Ethereum trading violates securities’ law, which would mean this could bring positive results for CBOE.