Should We Expect Ethereum Futures Soon?

It’s been barely a year since the first ever Bitcoin futures contract came into existence, and it seems we might be seeing one for Ethereum (currently the second largest cryptocurrency by way of market capitalization) soon.

Reports suggest that the Chicago Board Options Exchange (CBOE), same organisation that launched Bitcoin Futures in December 2017 is awaiting permission from the Commodities Futures Trading Commission (CFTC) to enable it launch Ethereum options by December, 2018.

The CBOE plans to base the Ethereum futures on the Gemini crypto exchange platform. This is the same medium it uses for the Bitcoin futures. The declaration by the U.S Securities and Exchange Commission (SEC) in June that Ether isn’t a security further paves the way for the possibility of an ETH futures instrument.

CBOE President Chris Concannon hailing the decision by SEC stated that ETH contracts had been in discussions since late 2017. “We are pleased with the SEC decision to provide clarity with respect to current Ether transactions. 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.”

Mr. Concannon further expatiated when he spoke with Quarts in June;

“Ether is one of the more highly liquid cryptocurrencies out there. Along with Bitcoin, the demand is much higher in Ether than any other cryptocurrency on the market. We’ll look at launching futures in the near term, but there’s a process we have to go through before even announcing such a launch. The process is something we’ve talked to the CFTC about at length and certainly want to take steps along that process and make sure everybody is comfortable with the next product we announce.”

After having successfully launched Bitcoin futures, Concannon says that there has been significant demand for Ether futures. He is of the view that the CBOE would use a similar product design as the Bitcoin futures to make Ether futures possible.