The rise was seen in the last three 4-hour trading session. A key market indicator of the price rise is the reports coming in of CFTC in the US being “comfortable” with an Ethereum based derivates contract.
CFTC Ethereum Futures?
Reportedly, in the US, a Commodities Futures Trading Commission (CFTC) Senior official has expressed that Ethereum Futures might be a possibility in the near futures. The official told the media,
“A derivatives exchange comes to us and says ‘we want to launch this particular product.’ … If they came to us with a particular derivative that met our requirements, I think that there’s a good chance that it would be self-certified by us.”
On Ethereum, he said that they are “comfortable” with an Ethereum derivative. However, he reiterated the fact, that the approval or disapproval is solely decided upon by the review of a specific application.
Bitcoin Futures have been trading in the market since December 2017. Reportedly, the volume of trading on these derivates is equivalent to the actual trading volume on global exchanges due to the ‘fake reported volume.’
Moreover, an Ethereum based derivate contract will improve the price discovery characteristics of Ethereum and also increase investor confidence in the cryptocurrency as the regulatory bodies would oversee the transactions. Moreover, it also highlights the greater degree of decentralization on Ethereum due to its early adoption and a ubiquitous GPU mining protocol.
Do you think that Ethereum Futures demand will be as high as Bitcoin Futures? Please share your views with us.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
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