CBOE to launch Ethereum Futures Trading in 2018


There is a remarkable step forward for the Ethereum community, as CBOE plans to launch futures trading for Ethereum before the end of 2018. In the long-term this news could have a positive impact on the cryptocurrency market. Yet how did the news today impact the price of Ether?

31 August, AtoZ Markets – The Chicago Board Options Exchange (CBOE), the second largest cryptocurrency as per market capitalization, has told market makers their plans to launch Ethereum trading futures before 2018 runs out.

However, the exchange is in expectation of further clarifications from the Commodities Futures Trading Commission (CFTC) before its official launch.

CBOE Plans to Launch Futures Trading For Ethereum Soon 

Being the first exchange to launch Bitcoin futures in December 2017, CBOE Global Markets has once again revealed, according to reports from Business Insider, that they are getting close to launching Ether futures. To initiate that process, the source stated that CBOE will base the soon to be launched ETH futures on the Gemini’s underlying market. The New York-based crypto exchange Gemini was founded and operated by Tyler and his twin brother, Cameron Winklevoss.

Once it is launched, it will be a big step for the crypto and futures market. Considering that it will signal a positive sign for crypto-adoption, as it could pave the way for increased crypto trading, such as an Exchange Traded Fund (ETF).

Back in June, the major US financial regulator Securities and Exchange Commission (SEC) said that Ethereum was not a security. This statement has generated mixed response from traders and investors in the Ethereum community. Thus preventing the Chicago commodities giant from taking the final step. However, CBOE Global Markets president, Chris Concannon was quoted saying;

“This announcement clears a key stumbling block for Ether futures, the case for which we’ve been considering since we launched the first Bitcoin futures in December 2017.”

What is the Difference Between CME & CBOE Bitcoin Futures?

The CME Group launched it’s BTC futures trading back in December 2017, a week after the CBOE launched the first ever regulated BTC futures. Yet, what is the difference between CME and CBOE BTC futures?

There is a key difference between the Bitcoin futures from CBOE and CME. The Chicago Board Options Exchange contract stands for one Bitcoin, while a CME Group BTC futures contract represents five Bitcoins.

Meanwhile, the CBOE settles its futures against the daily price from Gemini. The CME Bitcoin futures are priced against its own Bitcoin reference rate, which collects data from various crypto exchanges.

How is Ethereum Price Impacted by the news of CBOE?

The price of Ethereum has risen over the past 24 hours by less than 1%. On Thursday, it traded at $279, but later in the day Ether price has risen to $281. The report on CBOE’s plans to launch ETH futures has not massively impacted the price of Ethereum. Meanwhile, the daily trading volume is standing at $1.5 billion over the past 24 hours.

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