Ever since Bitcoin futures contracts became a thing, people have been wondering when other currencies would receive a similar treatment. Although that is not a straightforward process, some progress has been made where Ethereum is concerned. Crypto Facilities, a UK-based trading platform, has begun offering ETH/USD futures.
Ethereum Futures Have Arrived
With so many people interested in speculating on cryptocurrency prices these days, new investment vehicles will need to be created. Although most people can easily buy cryptocurrency from an exchange or even a dedicated ATM, they are not necessarily interested in taking that approach. After all, doing so requires a lengthy verification process, limited payment methods, and setting up a way to safely store one’s newly purchased cryptocurrency.
Even in 2018, it is this latter aspect which most people have issues with. There is a heavy reliance on exchanges and online wallets, which is never the right approach when it comes to cryptocurrency. Instead, users need to set up their own dedicated wallets under their control. Another option is buying a hardware wallet, which requires another upfront investment. It is only normal that a fair few speculators don’t want to deal with all of this hassle.
This is why Bitcoin futures are considered such a valuable addition to the cryptocurrency space. Although they don’t require people to buy Bitcoin directly, they do allow them to speculate on the price, for better or worse. So far, the Bitcoin futures offered by Cboe and CME have not made the biggest of impacts, but the overall trading volume is rising every month. With Crypto Facilities now enabling Ethereum futures in the UK, the future of cryptocurrency has suddenly gotten a lot more interesting.
It is worth mentioning that Crypto Facilities was already providing access to Bitcoin and XRP futures. To a lot of people, it seemed odd that the firm tapped XRP well before Ethereum in this regard, although the end result remains the same. By venturing into these three markets – which are also the three leading currencies by market cap – Crypto Facilities is intent on making this form of money a lot more accessible in the future.
Crypto Facilities’ CEO, Timo Schlaefer, commented:
Ether is the second-most liquid cryptocurrency after Bitcoin, trading in the billions of dollars daily, and we are excited to be launching ETH futures. The Ethereum network is the preeminent blockchain for smart contracts, and we believe this new trading instrument will attract more investors and bring greater liquidity to the marketplace.
Considering that this is the first Ethereum futures market to be offered by a regulated firm, it will be interesting to see if there is any real demand for this product. Investors can open long and short positions on the Ether price with relative ease. Given the current market sentiment, shorting Ether may be a lot more appealing. Even so, it is evident the markets will bounce back sooner or later.