First Regulated Ethereum Futures Are Coming

Following in the footsteps of bitcoin futures, launched by U.K.-based Crypto Facilities in 2015, and XRP futures, launched in 2016, the company, which is regulated by the Financial Conduct etherAuthority in the U.K., will start trading Ethereum futures.

Ethereum futures have a potential impact beyond just Crypto Facilities, which is backed by Digital Currency Group, String Ventures and a few more. The startup also provided support to the CME Group commodities exchange when it launched bitcoin futures in 2017.

As a multitude of exchanges including the CBOE will engage in cryptocurrency futures, trading Ethereum futures shows the increasingly mature state of digital assets, according to Timo Schlaefer, the founder and Chief Exec of Crypto Facilities.

“Bitcoin has gone through a maturation process as a financial asset with a futures market in the past year,” he stated. “And now Ethereum is following suit in a similiar path this year.”

Chicago-based Akuna Capital will provide liquidity for the Crypto Facilities Ethereum futures product and is looking forward to seeing this product fill a gap that exists in the market.

 Toby Allen, the now head of digital assets at Akuna explained the importance of the investment vehicle in a statement issued recently: “The addition of a futures product enables cryptocurrency traders to take both long and short positions in Ether and is another solid step in the development of the cryptocurrency asset class.”

In March of this year, Ethereum startup incubator ConsenSys announced a partnership with TrueDigital to develop a benchmark price for the ether cryptocurrency, in a possible step toward creating its own futures market.

Ether is up over the past year from $88 last May to over $700 as of this writing. This, in spite of some regulatory uncertainty as to whether Ethereum may actually qualify as a security in some jurisdictions.

 

Olé Crypto,
CBNN

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