The Chicago-based CBOE is considered to be launching Ethereum futures from the impending months. This review, reported by Business Insider, will make CBOE the first U . s exchange to receive such a listing.
Reducing The Risk
In cryptocurrency, futures trading allows investors to acquire or sell a specified asset on a chosen price with a specific date when you need it. These trades have the experience of mitigate investment risk, as being the contract between investor and exchange is immutable.
The source states that futures may launch after this year, in the Winklevoss twins’ cryptocurrency exchange, Gemini, supplying the pricing data. Gemini already supplies the data for CBOE’s Bitcoin futures which started late in 2009.
Before moving forward, CBOE wants extra overlook through the Commodity Futures Trading Commission . This group is lead by using a Christopher “Cryptodad” Giancarlo, that has always been inclined to cryptocurrencies.
It’s important to note the fact that Securities and Exchange Commission doesn’t consider either Ether or Bitcoin for a security. This means that CBOE may face a smaller challenge in establishing Ethereum futures because of lack of regulation regarding the asset.
From BTC to ETH
As one of the many exchanges to push Bitcoin futures, it just makes sense that CBOE would better of Ethereum next. The coin is second in market cap in order to Bitcoin, with a convincing use case also. That’s not to say CBOE’s interest in a number of different cryptocurrency projects fueling excessive.
However, some have argued that futures trading boosts the possibility of shorting entertainment an asset. From a market as volatile as cryptocurrency, that could be a genuine issue which might contribute to a substantial decline in Ethereum’s pricing.
Cryptocurrency stepping into the mainstream is getting more and more likely. CBOE has been looking into Bitcoin ETF’s, while Gemini becomes comfortable with the NASDAQ?market as well.