Chicago exchange to launch trade in ethereum futures
Ethereum, the second-biggest cryptocurrency by market capitalisation, is expected to see some leverage after the Chicago Board Options Exchange (CBOE) launches ether futures trading.
The CBOE is expected to introduce ethereum futures by the end of the year according to magazine Business Insider, citing sources familiar with the situation.
CBOE will reportedly base its ether futures – as it did its bitcoin futures – on the underlying market of the Gemini exchange, the New York-based trading venue owned by the Winklevoss twins.
Bitcoin futures paved the way
Bitcoin saw a significant boost, rising to its near-$20,000 record high, on the day CBOE introduced bitcoin futures last December.
Futures offer a way for investors to gain exposure to an asset class without physically owning it. They represent an agreement to buy or sell an asset on a specified future date at a specified price.
The Commodity Futures Trading Commission, which regulates the market for commodity and currency futures, has been consulted, a source told Business Insider, and CBOE is awaiting its go-ahead before it can launch ether futures trading.