CBOE is planning to launch ethereum futures by the end of the year according to Business Insider citing unnamed sources.
They claim Cboe has been telling market makers that eth futures are coming with the exchange awaiting a green light from the Commodities and Futures Trading Commission (CFTC).
Cboe’s eth futures would be based on Gemini’s spot trading exchange, they say, as is the case for Cboe’s bitcoin futures.
If this is approved, it may pave the way for an eth ETF with the Securities and Exchanges Commission (SEC) emphasizing that the majority of the trading has to occur on regulated exchanges, like CBOE, before they approve an ETF.
CFTC has a different approval process based on self-certification, with the commission giving both Cboe and CME the green light to launch bitcoin futures last year.
They faced some criticism, however, so they said there would be more scrutiny for further crypto related futures, but regulated bitcoin futures have been operating for many months without any problem so they may lean towards giving the green light.
Bitcoin’s price rose considerably in November and December last year in part due to much speculation regarding the launch of bitcoin futures.
Wall Street traders may have also bough actual bitcoin as a hedge for their futures trading, which may have added to buying pressure.
Buy the rumor, sell the news, then followed in December once they launched, with eth’s price rising from $270 to a recent high of $287 on the news of Cboe’s potential futures launch.
It remains to be seen however whether eth will replay bitcoin’s astonishing rise during winter last year ahead of the futures launch, but once the green light is given then the currency will be making its way to Wall Street.
That will provide more liquidity, as well as greater market access, which may lead to other Wall Street products, such as an eth ETF.