Is the Upcoming Cboe Ethereum Futures Market a Bad Thing?

Is the Upcoming Cboe Ethereum Futures Market a Bad Thing?

The Chicago Board of change (CBOE) plans to launch futures buying and selling on the cryptocurrency Ethereum till the top of 2018.

CBOE, which launched pioneering Bitcoin futures in December past year, is now waiting while the Commodity Futures Trading Commission (CFTC) to "get comfortable with the product before its official launch", the publication reported citing "people familiar with the matter". Now, that same organization is telling market makers that it's preparing to launch Ether (ETH) futures. Executives including CBOE President Chris Concannon had, even in the days after listing bitcoin futures, expressed their desire to launch an entire suite of cryptocurrency products, and listing ethereum futures is the natural next step in accomplishing this goal.

Futures are an agreement to buy and sell an asset on a specific future date and at a specific price while enabling investors to speculate on the BTC price without actually having town BTC. This, as they'll help alleviate the pressure the cryptocurrency is under by giving crypto bears an alternative currency to short.

"Since December of this year, if one was bearish on any aspect of crypto but did not want to own the underlying, they could short btc", Lee said. 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.

At the moment, the CBOE is waiting the approval of the US Commodity Futures Trading Commission (CFTC) and will launch Ethereum futures trading after the relevant decision.

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Cboe is one of the world's largest futures and exchange trading marketplaces.

Meanwhile, indications suggest that the introduction of ETH futures is close at hand. CBOE launched BTC futures in December 2017, using the quotes from New York-based crypto exchange Gemini as an underlying market.

Back in June, the price of ETH spiked when an SEC representative claimed ETH was not a security, and that the agency wasn't planning to regulate it as a security.

Do you agree with Tom Lee's position on the impact of ETH futures on the prices of ETH and BTC?

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