Chicago Board Options Exchange (CBOE) has set the cryptocurrency market abuzz by telling market makers that plans are in place for pushing futures of ethereum (second largest cryptocurrency as per market capitalization).
That's because the launch of ether futures would provide an easy way for ether bears to bet against the coin. Also, the market accounts for a small portion of the total BTC trading arena, so it is unlikely that BTC futures trading had any direct impact on the Bitcoin price trajectory.
"Applying the disclosure regime of the federal securities laws to the offer and resale of Bitcoin would seem to add little value. And putting aside the fundraising that accompanied the creation of Ether, based on my understanding of the present state of Ether, the Ethereum network and its decentralized structure, current offers and sales of Ether are not securities transactions".
According to undisclosed sources, the release of the futures is planned for the end of 2018.
ETH futures is expected to be launched by CBOE by the end of 2018. While anticipation for bitcoin futures contracts is believed to have helped the flagship cryptocurrency surge to a new all-time high of almost $20,000 in mid-December, shorting them is also believed to have helped it drop.
Bitcoin futures arrived in December 2017.
CBOE's rush to list the first ethereum futures is not surprising.
A study by Securities and Exchange Commission (SEC) revealed that the launch of Bitcoin futures was one of the prime reasons for the price decline from about $20,000 to $6,000.
Today, two major marketplaces feature bitcoin futures trading, including Cboe and CME Group. However Terry Duffy the CEO of CME, stated he won't be getting an Ethereum futures live for CME.