Citing an unnamed source with knowledge of the situation, Business Insider reports that CBOE wants to become the first USA exchange to list an ethereum futures product, which would transform ether into more of a two-sided market by allowing professional traders to go both long and short on the second-largest cryptocurrency. If this is true, it could mean a lot for Ethereum.
CBOE president Chris Concannon said earlier "it could not stop at bitcoin", and that the exchange could add other cryptocurrency futures as well, such as Ethereum and Bitcoin Cash. CBOE is reportedly basing its upcoming ether futures on the underlying market of crypto exchange Gemini, founded and run by Tyler and Cameron Winklevoss.
The BTC prices continued to consolidate but the more important factor was that the prices continued to trade above the $6800 region which is what the bulls would be hoping for.
Cboe is telling its trading firm clients that it is getting close to launching a market for ether futures, but that might actually be a bad thing for the cryptocurrency, one expert says.
Let us not forget that be it capital market or crypto market, the price of the assets are highly volatile as they are more inclined towards the macro fundamentals. Their Bitcoin futures are also based on the same market.
"The futures and options exchange is waiting on the Commodities Futures Trading Commission (CFTC) to get comfortable with the product before its official launch", a person familiar with the matter told Business Insider. Bitcoin is the only other cryptocurrency that the SEC has explicitly said is not a security.
Ultimately, the outcome of the new Ethereum futures market will reach an equilibrium between the price boost resulting from increased adoption and institutional investor attention, and the downside from greater exposure to bearish contracts. With extra regulatory safeguards, a week after Cboe launched the first ever regulated US bitcoin futures, CME Group followed suit.
While ether futures can be bad for the second-largest cryptocurrency by market cap, they can benefit bitcoin, Lee noted.