“You look at the entire crypto space and you look at what other products have the liquidity and the notional size, a derivative makes sense.”
So said Cboe’s president and chief operating officer, Chris Concannon, back in January before adding that any further crypto futures would have to wait until the exchange upgrades its core trading software with the technology it acquired with Bats Global Markets last year.
That’s now completed, with the exchange announcing “the successful migration of Cboe Futures Exchange (CFE) to its proprietary Bats technology.”
Chris Isaacson, Chief Information Officer of Cboe, said: “Better technology makes better markets, and delivering a best-in- class platform to our futures trading customers was our priority.”
Gemini, Cboe’s partner on crypto futures, has provided ethereum trading since at least 2016 and has a daily eth auction.
Cboe, therefore, would now have the infrastructure to add ethereum futures, especially since they’ve gained some three months experience with bitcoin futures where trading has been fairly smooth.
While on the regulatory front CFTC would probably give them the green light under the self-certification procedure especially as its chairman, Christopher Giancarlo, has been quite friendly to this space.
Moreover, a further hint eth futures might be on the way comes from the Winklevoss twins, who said their focus was to add obvious candidates for expansion “from the Satoshi Nakamoto family tree – Bitcoin cash, Litecoin.”
That additional infrastructure would be needed for Cboe to potentially provide bch or ltc futures, with Winklevoss stating their contract takes into account potential expansion.
But little would be required on the side of Gemini for Cboe to add ethereum futures, with the only stated hurdle being the upgrade of the trading platform, which is now done.
So eth futures could be on the way, but when exactly remains unclear at this stage as they have not yet provided an update on their plans.