CBOE launches futures trading on Ethereum later this year



CBOE Global Markets, owner of the Chicago Board Options Exchange (CBOE) and one of the world's largest trading holding companies, is looking to launch futures for Ethereum (ETH), a Business Insider reported on August 30th.

Sources familiar with the situation told Business Insider that CBOE Global Markets is planning to launch futures on ETH by the end of 2018. CBOE will base its ETH on the underlying Gemini market; the operator also based its Bitcoin (BTC) futures on the New York-based cryptographic exchange operated by the Winklevoss twins.

The CBOE launched trading on BTC futures in December of last year. Futures represent an agreement to buy and sell assets at a specific future date at a specific price and allow investors to speculate on the BTC price without having to own the BTC. BTC futures are not just for physical assets, but can also be traded on financial assets.

A person familiar with the matter has told Business Insider that the futures and options exchange is pending the Commodities Futures Trading Commission (CFTC) the project has been going ahead of its official launch.

Another major US financial authority, the Securities and Exchange Commission (SEC), said in June that Ethereum was not a security. CBOE Global Markets president Chris Concannon said, "This announcement clarifies a key obstacle for Ether futures, the case we've been considering since we launched the first Bitcoin futures in December 2017."

Last month, the Chicago Mercantile Exchange (CME) published a report on the average daily volume of BTC futures, stating that it rose by 93% in the second quarter of 2018. The CME also stated that the open interest rate o the number of open contracts on the futures of the BTC exceeded 2,400, with an increase of 58% in the first quarter.

The CME launched trading on BTC futures on December 17, following the launch of CBOE futures on the BTC. Later in July, CME's CEO Terry Duffy said the company will not introduce cryptocurrency futures other than Bitcoin (BTC) in the near future, citing their volatility as the main reason.


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