Ether Inches Closer to Institutional Trading; Price Jump Expected?

Last week on Monday the 12th of March, ConsenSys announced that it will be partnering TrueDigital on its trueEx project which is a new online interest rate swap marketplace. This is a step in moving towards the development of a benchmark price for Ether (ETH).

The announcement has it that the two firms will be designing a target reference index for ETH. ETH is the second largest cryptocurrency by way of market capitalization and by making a foray into the institutional trading market, it is expected that its market capitalization might witness some expansion and also present the market with more crypto product options.

Alongside this news of ETH trading on institutional platforms, trueEx also announced that the company will soon launch a derivatives marketplace for cryptocurrency assets. The first of these crypto assets will be a Bitcoin contract on the trueEx’s swap trading platform. This is pending approval from the U.S. Commodity Futures Trading Commission (CFTC).

This development comes after the CME Group and Chicago Board Options Exchange (CBOE) were authorized by the CFTC to trade Bitcoin in December, 2017. There seems to be an increasing appetite for crptocurrency-related derivative products as such trading firms are moving to satisfy the market’s demands.

Sunil Hirani, Founder of TrueDigital said that “institutional investors and commercial partners are ready for a regulated and liquid marketplace to gain exposure to and hedge these increasingly important digital currencies and commodities.”

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