Tom Lee: CBOE Ethereum Futures May Hurt ETH, But Benefit Bitcoin (BTC)

Andrew Cummings
September 3, 2018

Chicago Board Options Exchange (CBOE) has set the cryptocurrency market abuzz by telling market makers that plans are in place for pushing futures of ethereum (second largest cryptocurrency as per market capitalization).

CBOE, which launched pioneering Bitcoin futures in December a year ago, is now waiting while the Commodity Futures Trading Commission (CFTC) to "get comfortable with the product before its official launch", the publication reported citing "people familiar with the matter".

CBOE will reportedly base its ETH futures on Gemini's underlying market.

Experts in the field have noted that the launch of Ether futures would expand the trading opportunities and could pave the way for eventual regulatory approval for ETFs.

In December past year, CBOE introduced its BTC future trading. Helping it recover were Eminem, who recently mentioned the cryptocurrency in his tenth album "Kamikaze", and hedge fund manager Mark Yusko who slammed its critics while noting cryptos will be the "biggest asset" within a decade.

According to Lee, ETH futures will provide a new stomping ground for bears, relieving the pressure on Bitcoin. A fall below this region would mean that the prices and the market would be back in the long held range and this would only mean more consolidation and more ranging in the days and weeks to come, something that most of the traders would not want, after all that they have been through over the past couple of months.

The Commodities Futures Trading Commission (CFTC) is supposed to affirm the futures and options exchange. Gemini now supplies pricing data for CBOE's bitcoin futures, which first launched last December. At the time, Cboe Chief, Chris Concannon, commented that the decision had paved the way for the introduction of ETH futures trading. Also, the market accounts for a small portion of the total BTC trading arena, so it is unlikely that BTC futures trading had any direct impact on the Bitcoin price trajectory.

In June, a financial regulator from the Securities and Exchange Commission (SEC) said that Ethereum was not a security.

Like the CBOE, the CME began offering BTC futures trading in December of past year.

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