One of the World’s largest exchange holding companies and the owner of the Chicago Board Options Exchange (CBOE), CBOE Global Markets is planning to launch Ethereum futures, as reported on 30th August by Business Insider.
The launch of Ethereum futures is being planned to be carried out by the end of 2018, as indicated by the sources to Business Insider. It is highly likely for CBOE to base its ETH futures with Gemini’s underlying market. CBOE also based its Bitcoin(BTC) futures trading on the New York-based crypto exchange in December last year, that is run by the Winklevoss twins.
What really “futures” mean?
Futures represent a contract to buy and sell an asset on a particular future date at a particular cost and empower the investors to invest on the BTC price, without really owning BTC. BTC futures are not just for physical assets, they can be traded on financial assets too.
A source familiar with the issue revealed to Business Insider that the futures and options exchange is looking out for the Commodities Futures Trading Commission (CFTC) to give the approval to the project before its official launch.
The major U.S. financial regulator, the Securities and Exchange Commission (SEC), said in June that Ethereum was not a security. CBOE Global Markets president Chris Concannon then said,
“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.”
A month ago, the Chicago Mercantile Exchange (CME) released a report of BTC futures average daily volume, saying that it raised by 93 percent in the second quarter over the first quarter of 2018. The CME additionally expressed that the rate of open interest or the number of open contracts on BTC futures has surpassed 2,400, which amounted to a 58 percent rise in Q1.
The CME launched BTC futures trading on December 17, following the launch of BTC futures by the CBOE. Later in July, the CME CEO Terry Duffy said that the organization won’t bring any futures on cryptocurrencies other than Bitcoin (BTC) soon, referring to their volatility as the significant reason.
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