In December 2017, the entire crypto world witnessed the launch of the first ever bitcoin futures contracts by two institutional investors, CME Group and the CBOE.
Now, Crypto Facilities, a blockchain-based virtual currency trading firm has announced its launching ethereum futures contracts.
The United Kingdom-based firm says it’s proud to be the first company to create a futures contracts for the world’s second largest cryptocurrency. The firm hinted that they are building a highly regulated platform that would enable investors to put their money where their mouth is by taking long or short positions which will allow them to “broaden investment opportunities and manage risks more effectively.”
Ether is the native cryptocurrency of the Ethereum blockchain. It might interest you to know that Ethereum currently hosts over 1000 distributed applications on its smart contracts blockchain. Ether is also a highly valuable altcoin with a current market cap of over $68 billion.
The CEO of Crypto Facilities, Timo Schlaefer reiterated that:
“We are excited to be launching ETH futures. The ethereum network is the pre-eminent blockchain for smart contracts, and we believe this new trading instrument will attract more investors and bring greater liquidity to the marketplace.”
The startup is not alone in its quest for glory. Crypto Facilities will be working with liquidity providers, Akuna Capital and B2C2. The two startups will serve a backup to its futures contracts.
Toby Allen, head of digital assets at Akuna Capital expressed optimism over this new venture. In his words:
“[We are] looking forward to seeing this much-needed product fill a gap in the market. The creation of ethereum futures contract is another giant leap in the development of the crypto asset class.”
Liquidity providers, B2C2 also said that the ethereum altcoin is matured enough to have its futures contract. The owner of the firm, Max Boonen noted that:
“The continuing evolution and commoditization we’re seeing in ethereum will further increase liquidity in the marketplace, enabling participants to exchange assets seamlessly and unlock value. We look forward to providing liquidity for this new product.”
Notably, if all goes as planned, the ethereum futures contracts will be Crypto Facilities third futures contracts in the digital currency space. The firm has previously launched its bitcoin and Ripple (XRP) futures. It also functions as a Bitcoin Reference Rate provider for CME CF.
Whether the launch of Ethereum futures will crash the price of ether just like the bitcoin futures did to bitcoin remains to be seen.