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CBOE to Launch Ethereum Futures Trading Option

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The Chicago Board Options Exchange (CBOE) will launch Ethereum futures trading this year.

The platform which launched Bitcoin Futures trading in 2017 is one of the largest exchange holding platforms in the world.

The company has plans to base the Ethereum futures on Gemini and its underlying market

Gemini is also the exchange used by CBOE in Bitcoin futures trading.

CBOE launched Bitcoin futures trading towards the end of 2017 to allow traders to speculate the price of Bitcoin without owning BTC. The futures trading is said to have contributed massively to reducing the volatility of Bitcoin since December 2017. Futures trading involve buying a specific asset and then selling it at a future date at a specified price.

Reports indicate that CBOE is waiting to be cleared by the Commodities Futures Trading Commission before launching it officially. According to Chris Concannon CBOE’s Global markets president: “SEC announced that Ethereum is not a security. This announcement cleared a block which stood between us and Ethereum futures. We have been considering launching Ethereum futures since December 2017 when we launched Bitcoin futures.”

The popularity of futures trading

The volume of Bitcoin futures increased by 93% in the second quarter of 2018 as compared to the first quarter.

This is according to a report released last month by CME which also indicated that the contracts of Bitcoin futures had gone up by 58%. CME also launched Bitcoin futures trading in 2017 after the launch by CBOE. However, the company has maintained that it’s not planning to launch any futures by any other digital currency other than Bitcoin.

Both CDOE and CME launched Bitcoin futures when the price of digital currencies was very high. The price has since gone down by more than half. Bitcoin is currently trading at $7,004 as compared to December 2017 when it almost hit the $20,000 mark. This drop affected almost all digital coins with Ethereum also dropping significantly. In 2017 Ethereum was trading around the $1000 mark but today the price of Ethereum is $282 which shows a massive drop.

Danny Kim the head of growth at SFOX noted that: “This move is very good for crypto investors. The will take cryptocurrency out of the current bearish market and make a new bull out of it.”

 

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