CME (Chicago Mercantile Exchange), has announced changes in its pricing data source for its Ether [ETH] based indices on the Exchange. CME is one of the largest platforms for trading regulated Bitcoin futures in the US. Recently. It also surpassed the all-time high daily trading volume above $1.7 billion.
The Exchange has added New York-based itBit Exchange to its list of data providers along with Kraken and Bitstamp. While Kraken is another US-based Exchange, Bitstamp is based out of Luxemburg.
According to Frank Chapprano, the Director at The Block, it is possible that CME is considering the launch of Ether [ETH] Futures. As reported on CoinGape earlier, the regulators at the CFTC are comfortable with the possibility of an Ethereum futures due to its widespread reach. Hence, the chance might be finally coming to fruition.
Reportedly, a source from the industry confirmed with the journalist about the preparations as he noted,
“I think this is prep for an Ether future, they have to improve the robustness of their index.”
The CFTC (Commodity and Futures Trading Commission) in the US presides over matters related to the futures market. Their concern around crypto-based future markets has been massive volatility and possible market manipulation that is prevalent in the crypto-industry.
However, decentralization and widespread presence of Ethereum is one the rise. As a platform or an investment asset seems Ethereum has achieved the degree of decentralization and open market characteristics that the futures market warrants.
The price of Ether [ETH] at 5: 00 hours UTC on 6th July 2019 is $294.11. It is trading 2.31% higher on a daily scale.
Do you think Ethereum Futures contracts will be bullish or bearish for Ethereum? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com