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Several companies have launched markets for the leading cryptocurrency bitcoins, with CME and Cboe initiating bitcoin futures in December 2017.
2018 has seen several cryptographic companies express an explicit interest in offering ethereum derivatives on the market. However, a number of market experts have stated that the probabilities of regulatory approval remain scarce in 2019 compared to last year.
LedgerX CEO Paul Chou thinks that the chances of an ethereal derivative of hitting the market this year are "50-50 at most".
LedgerX has developed an ethereum option that has been set up for trading but can not be implemented because the US Commodity Trade Commission (CFTC) has not given the green light to the regulations.
The CFTC provides oversight and regulatory jurisdiction on commodity and futures markets in the United States and published an "Input Request" last December seeking information from the public and other market participants.
This information, according to the agency, would help to have a better understanding of ethereum, including any potential risk of having derivatives markets in ether.
The regulator's warning said:
"The RFI seeks to understand the similarities and distinctions between some virtual currencies, including ether and bitcoin, as well as opportunities, challenges and specific risks of the ether".
Many commercial companies have ready future ethers
In addition to Chou & # 39; s LedgerX, many other companies in the market have or are developing plans for future deals related to the ether.
These companies include ErisX, Seed CX and Cboe Global Markets. While the first two have expressed interest in the launch of derivatives of ethereum, the CBOE already has some bitcoins on the market and is waiting for the go-ahead for the launch of the future ethereum.
While all these ethereal futures wait behind the scenes, the chronology of when one of them gets approval remains unknown according to market experts.
For one, the CFTC window on the collection of public comments closes around mid-February. Only after this will the regulator keep his reflections on the question of whether the etheric futures are deserved.
The question of the passage of Ethereum to the test of the stake consensus algorithm
Jeff Bandman is an encrypted consultant and at one point he recommended the CFTC on fintech. He says the failure of the agency to approve a derivative of ether is not because of them "I hate for myselft. "
According to him, the CFTC understands very well "what proof of network work is", which is not the case with the imminent passage of Ethereum to a test of the pole mechanism. He adds that the PoS problem "raises new questions", more specifically about what risks there may be.
Ethereum (ETH) will eventually adopt a PoS consensus mechanism where ETH holders will be obliged to "bet" the coins rather than the "mining" used to protect the bitcoin network. The update of postponed Constantinople is one of several updates that will see Ethereum pass from PoW to PoS.
Nelson Rosario, a cryptic lawyer, told the Block that the switch added "much uncertainty" with seemingly insecure regulators about what or how the new system will impact any approved end product.
According to another undisclosed source that spoke at the publication, stakeout works similarly to a derivative product.
Therefore, adding a futures product to the fore introduces a certain "level of complexity" that could see the underlying spot market face "too many different pressures", which affect the prices of the same ether.
It is these pressures to which the CFTC RFIs allude when they look for input on whether ether derivatives can "modify or modify incentive structures"Underlying a PoS consensus model.
Chou concludes that the market may have to wait a bit longer, adding that a futures contract on ETHs for the market is a "premature" concept, just like the proposals of bitcoin ETFs that came out in the early days of 2017.
Several companies have the hope that regulators will allow derivatives of the aether in 2019, even if this remains uncertain.
disavowal: This is not an investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.
