Following SEC's announcement, CBOE Global Markets president Chris Concannon said that the agency's statement "clears a key stumbling block for ether futures, the case for which we've been considering since we launched the first bitcoin futures in December 2017". There have been a lot of positive developments in the crypto industry but none of them seem to have had any much of an impact on the prices as yet.
Citing an unnamed source with knowledge of the situation, Business Insider reports that CBOE wants to become the first US exchange to list an ethereum futures product, which would transform ether into more of a two-sided market by allowing professional traders to go both long and short on the second-largest cryptocurrency.
Bitcoin futures are already on the CBOE, with many experts believing that it helped propel the cryptocurrency to its highest price back in December 2017. After that, the top-ranked cryptocurrency took a nose-dive, reaching below $6,000 the following February.
Two protuberant digital currency investors and analysts predicted that the value of Bitcoin (BTC) would hit the $20k level since early this year.More news: Pakistan PM Imran Khan calls for expanding bilateral cooperation with Japan
On the other hand, however, Lee added that the introduction of Ether futures may alleviate some of the pain placed on Bitcoin by bears, as the short interest may translate from the BTC contract to the ETH contract. Some think that this is no unfortunate coincidence, but rather, the effect of short sellers placing bets against Bitcoin via the futures market. The BTC traders have been used to periods of huge volatility since past year and for such people, it has been quite hard to deal with the ranging that has been going on for long.
Since December of this year, if one was bearish on any aspect of crypto but did not want to own the underlying, they could short btc.
The Commodities Futures Trading Commission (CFTC) is supposed to affirm the futures and options exchange. In June 2018, a Securities and Exchange Commission director mentioned that the SEC agency did not see the trading of the ether token as a violation of the securities law, which could mean good news for CBOE.
CBOE Global Markets, one of the world's biggest exchange holding organizations. If you follow Business Insider, the futures will be traded on Gemini.