CBOE might launch Ethereum futures this year, but ETH/USD bears unimpressed

According to Business insider's article released on August 31, 22018, CBOE is now waiting for further information from the US Commodity Futures Trading Commission (CFTC).

According to Lee, futures contracts are in fact to blame for the crypto market's "gut-wrenching" drop, as his data revealed bitcoin's price dropped around CBOE futures expirations.

CBOE will reportedly base its ETH futures on Gemini's underlying market.

On the other hand, however, Lee added that the introduction of Ether futures may alleviate some of the pain placed on Bitcoin by bears, as the short interest may translate from the BTC contract to the ETH contract. While anticipation for bitcoin futures contracts is believed to have helped the flagship cryptocurrency surge to a new all-time high of almost $20,000 in mid-December, shorting them is also believed to have helped it drop.

Futures, which give investors a way to bet on the future price of an asset, helped propel bitcoin to all-time highs at the end of December.

"Since December of this year, if one was bearish on any aspect of crypto but did not want to own the underlying, they could short btc", Lee said. The platform, BTC Futures are not only for physical assets, however, the financial assets can also be traded on it. The exchange holding company previously based its Bitcoin futures on the Winklevoss's New York-based cryptocurrency exchange as well.

At the moment, the CBOE is waiting the approval of the US Commodity Futures Trading Commission (CFTC) and will launch Ethereum futures trading after the relevant decision.

Like the CBOE, the CME began offering BTC futures trading in December of previous year.

It is nearly impossible to predict the evolution of Ether's price after a giant like Cboe will launch a related futures option.

In June of this year, William Hinman, US Securities and Exchange Commission (SEC) director of corporate finance, said that the agency doesn't consider ethereum's native token a security. There have been a lot of positive developments in the crypto industry but none of them seem to have had any much of an impact on the prices as yet.

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