Chicago Board Options Exchange CBOE plans to launch Ethereum ETH futures this year

According to Business Insider on August 30, sources said that the Chicago Board Options Exchange (CBOE) may launch Ethereum (ETH) futures by the end of 2018. The first major exchange to launch Bitcoin futures at the end of last year is waiting for further instructions from the U.S. Commodity Futures Trading Commission (CFTC). The launch of Ethereum futures is an important step towards the maturity of Ethereum and may also pave the way for the launch of Bitcoin exchange-traded funds (ETFs).



Futures, which offer investors a way to bet on the future price of an asset, helped propel bitcoin to an all-time high in late December. Since December, the bitcoin futures market at the Chicago Board Options Exchange (CBOE) and the Chicago Mercantile Exchange (CME) has been relatively quiet.

Danny Kim, an executive at cryptocurrency trading technology company SFOX, said:

The listing of ETH futures will allow cryptocurrency traders to hold both long and short positions in Ethereum, which is also an important step towards an acceptable asset class. With this, I believe this new investment opportunity can rescue the cryptocurrency market from the downturn and turn the bear market into a bull market.

People familiar with the matter said that the Chicago Board Options Exchange's futures trading will be based on Gemini's underlying market. It is currently waiting for the adaptation and support of the U.S. Commodity Futures Trading Commission (CFTC) before it can be officially launched.

In addition, in June this year, William Hinman, director of the financial division of the U.S. Securities and Exchange Commission (SEC), said that, aside from Ethereum-related fundraising activities, based on his understanding of the current status of Ethereum, the network and its decentralized structure, the current issuance and sale of Ethereum does not constitute securities trading. William Hinman may reflect the attitude of the SEC to some extent, which is a good sign for the Chicago Board Options Exchange.

The launch of Ethereum futures on a large, regulated U.S. exchange would mark a further step in the maturation of Ethereum as it could provide a wider range of cryptocurrency trading and could even open the door to approval of an ETF.

After Business Insider released this good news yesterday, the price of Ethereum immediately rose slightly.

Cboe President and CEO Chris Concannon has previously hinted at the launch of other products related to the crypto market. In December 2017, he said that as the market continues to mature, a series of cryptocurrency-related products, including Ethereum and Bitcoin Cash futures, may gradually emerge. He said:

We have embarked on this path in the form of ETFs. A healthy market requires support from underlying markets, derivative markets and products such as ETFs, but these changes take time.

Meanwhile, Terry Duffy, chief executive of CBOE rival Chicago Mercantile Exchange (CME), said there would be no similar moves in the near future.