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CME Considers Launching Ethereum Futures: Report

05/09/2020
CME considers, ethereum, ETH

The CME considers launching Ethereum futures after it launched BTC futures and the investors started demanding something new. The investors think that these derivatives will only launch ETH into a new buying season and will bring the asset closer to the institutional audience. What will this mean for the Ethereum price, we find out in the latest Ethereum news.

According to a well-known crypto trader, it won’t be long before we see some Ethereum futures launched. He believes that this comes as a belief that the introduction of Proof of Stake via ETH 2.0 will boost the demand for the ETH derivatives which will also boost the exchanges to list futures. As CME considers launching ETH futures, it is expected this event to have a huge impact on the price of the asset.

There’s not a lot of backing evidence for this assertion other than the belief of the trader that the ETH 2.0 will catalyze futures demand but the Commodity Futures Trading Commission seems to be of support of this idea. The chair of CFTC, Heath Tarbert, said that he expects the ETH futures to come into the US market in the near future:

 “Certainly, we’ve seen Bitcoin futures, both cash-settled as well as physically delivered. My guess is we’re going to see Ether futures as well, and as things start to migrate into the commodities space, we’ll see even more.”

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CME

During an event in Washington DC, Tarbert explained that he expects the derivatives to enter the market in about a year. Ethereum is technically a commodity so if the CFTC regulates the US futures and derivatives of the cryptocurrency, it will be responsible for the regulation of the new Ethereum futures as well.  It seems that the institutional demand for Ethereum will also enter the market. The multi-trillion-dollar company Fidelity Investments noted last year that to respond better to the demand, they will implement Ethereum services in the near future.

Many are expecting the Etherem futures launch but there are some that don’t believe Ethereum is ready. Some claim that ethereum has low liquidity compared to Bitcoin and there’s uncertainty about the consensus mechanisms and possible hard forks in the future.

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