CBOE global markets which is one of the worlds largest exchange holding companies will most likely launch futures for Ethereum later this year, reported by Business Insider on August 30.
CBOE has been in the news several times this year. Not only because they are one of the worlds biggest exchange, but because they have applied for an ETF that is the one that has the biggest chance of being accepted by the SEC.
Several have applied for ETFs, but none has so far been accepted by SEC. Among the ones who have tried their luck is the Winklevoss Twins, and SEC recently rejected 9 Bitcoin ETFs including Proshares Bitcoin ETF.
While we are waiting for CBOEs ETF to be approved or rejected, you can trade Bitcoin (BTC) futures at CBOE, which was launched in December 2017. That is about to change. The recent news states that CBOE also plans to introduce Ethereum (ETH) futures to the market by the end of 2018. They will base the futures on Gemini’s underlying market. Gemini, the New York-based exchange, is interestingly enough run by the Winklevoss twins whose ETF got rejected twice.
Futures can be explained as an agreement to buy and sell an asset on a specific future date at a specific price and enable investors to speculate on the BTC price without actually having to own BTC. BTC futures are not just for physical assets; they can be traded on financial assets as well.
Before the Ethereum future can be launched, CBOE needs the approval of Commodities Future Trading Commission (CFTC) which has been dated to December and then CBOE can officially launch.
However, the worlds first Ethereum futures have already been introduced to the market. The firm behind the futures contracts is the cryptocurrency exchange Crypto Facilities. Crypto Facilities fall under the regulation of the British FCA (Financial Conduct Authority) and have a history of dealing in the trade of other cryptocurrency derivatives. It already offers futures for both Ripple and Bitcoin, and has a cooperation with the Chicago-based trading firm Akuna Capital to supply liquidity for the upcoming Ethereum derivatives offering, in addition to the British trading firm B2C2.
While speaking of being first, it’s also worth mentioning that the UK was first with introducing Bitcoin Cash futures to the market as well. The cryptocurrency exchange, Crypto Facilities that is based in the UK, has announced the launch of the first Bitcoin Cash/US Dollar (BCH/USD) futures. FCA – Federal Conduct Authority (FCA) regulates Crypto Facilities, and Bitcoin Cash became a new crypto-based product recently.
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Dennis Sahlström has been trading and investing since 2012 and has for the last two years been consistently profitable. He has been in the crypto- and blockchain space since the middle of 2017 and realized its potential for our world, not least how it is transforming the society we live in. He has now created an education platform, together with the wealth coach Marcus the Maria. They teach regular people how to invest and trade in the cryptocurrency market with proven strategies. If you want to learn more and feel like its time to get into this new asset class, download our free book and register to the next live training to get your future in cryptocurrencies started.