CME launched ETH futures trading as a new offering that will accompany Bitcoin futures and options that were launched three years ago so let’s read more in today’s Ethereum news.
The launch of the Ethereum futures on CME shows that they are bullish on the crypto as the experts say. The launch of ETH futures is also the next step to crypto adoption in the institutional finance sector. The Chicago Mercantile Exchange- CME launched ETH futures on its platform and made it quite easy for institutional investors to gain more exposure to the world’s second-biggest crypto by market cap.
CME ether futures start trading. 77 contracts crossed so far. ETH / BTC retraced a bit. pic.twitter.com/YaFwtV4Jir
— Documenting Ethereum 🧾 (@DocumentEther) February 8, 2021
According to the data from Skew, 77 Ethereum futures contracts were traded since the launch and these contracts are for 50 ETH each. Lior Messika, the founder and managing partner at EU Venture Eden Block said:
“With the Ethereum network enabling tens of new ‘crypto unicorns’ in the last year, ETH is poised to become a clear focal point for investors seeking exposure to the broader innovation enabled by crypto, and its now numerous use cases.”
He added that in many ways, Ethereum is in an early stage of discovering its potential while the Bitcoin narrative proves itself for 10 years. The new type of derivatives contract and futures were designed for selling the asset at a specific price on a certain date in the near future. Unlike other options, futures contracts have to be fulfilled on their expiration date. This way, it could be a gamble where one of the two parties will win depending on the differences between the contract’s strike price with the actual market price of the asset at the time. While CME launched BTC futures and options trading almost three years ago, it took some time before it added another coin to the list. But Etheruem is quite a different thing. The blockchain platform serves as a foundation for countless decentralized finance projects.
Kadan Stadelmann who is the CTO of blockchain solutions provider Komodo explained that the launch of ETH futures is the logical next step towards crypto adoption in the institutional finance sector which the crypto industry was waiting for:
“Bitcoin and Ethereum are obviously in a different stratosphere when looking at current crypto adoption, but I do believe this is only the beginning of futures trading expansion among large institutions. We will see more assets supported and more players in the mix.”
He explained that when CME launched bitcoin futures back in 2017, the market was different than today. Smart contracts at that time were an infant technology and not many understood what blockchain really is. Today, Ethereum is a global financial powerhouse with ETH in the middle of it.
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