Behind the Scenes, CBOE Reportedly Saying Ether Futures Are Nigh
A new report from Business Insider‘s Frank Chaparro indicates that Chicago Board Options Exchange, among the world’s largest options exchanges and the first mainstream market to launch a bitcoin futures product, may have an ether futures product live by year’s end. The move would further cement ether’s position as the runner-up powerhouse crypto behind bitcoin in the space.
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Ether Futures Look Nigh for Top U.S. Options Exchange
CBOE became a mainstay in the cryptocurrency ecosystem after launching the first mainstream bitcoin futures product in December 2017. Now, they’re reportedly looking to cement that first-mover status in telling market participants behind the scenes that the powerhouse options exchange anticipates launching an ether futures product imminently, possibly by the close of 2018.
— Richard Heart (no giveaways) (@RichardHeartWin) August 30, 2018
It would be a major, if not necessarily surprising, development for the second-largest cryptocurrency by market cap.
Ever since the Chicago Mercantile Exchange and CBOE launched the first two bitcoin futures products in America, ether futures contracts here have been considered by many to be a foregone conclusion, with the question being more a matter of when, not if.
That’s apparently the framing CBOE has been offering to unspecified market participants, saying their ETH-based product, which would track according to Gemini’s ether exchange rate, is in the wings and pending only over more regulatory “clarity” from U.S. regulators.
The news comes after current CBOE president Chris Concannon had publicly signaled interest in potential ether and bitcoin cash futures contracts as early as December 2017. It also comes after Securities and Exchange Commission official William Hinman suggested back in June that ether wasn’t a security in its current state.
Still, in all fairness, not everyone is convinced the move would be a prudent one.
Launching futures contracts on a cryptocurrency where 70% of the coins outstanding were known to be in the hands of fewer than 100 people, which may well have been borne out of an unlawful securities offering, is unacceptable. https://t.co/hTE4mAGZfB
— Preston Byrne (@prestonjbyrne) August 30, 2018
Forward, Onward on the Technical Side of Things
While an ETH futures product would take ether’s commercial dimensions to a new plane, it’s been full steam ahead for Ethereum’s techniks as well as of late.
Last week, the blockchain’s developers discussed possible ether issuance reductions at Ethereum Core’s 45th meeting, with reductions of 2 ETH (EIP-1234) or 1 ETH (EIP-858) being scrutinized. No definite decision was arrived at, though the debate is sure to remain a hot topic in the crypto’s ecosystem with an array of stakeholders being involved.
Also, earlier in August the Ethereum Foundation announced their latest round of ecosystem grants. The “Wave 4” grants went to an array of forward-minded teams, whose projects included a so-called “tokenless” Lightning Network for ETH, a “shasper” (sharding + Casper) implementation, and more.
In other recent news, Status announced its own sharding client in Nimbus, ConsenSys’ PegaSys protocollers hailed their coming Orion “Java-based Private Transaction Manager,” and the new Ethereum Virtual Machine language Vyper has seen its potential come into further focus. The horizon is looking closer for the smart contracts platform, indeed.
As for the matter of the potential futures product, the wider Ethereum community will surely be racked in the coming months by the same questions that have arisen in the post-BTC futures world, wherein some skeptics have wondered if futures have worked to effectively suppress bitcoin’s price.
It’s all up for debate for now.
What’s your take? Where do you think Ethereum will be five years from now? Let us know in the comments below.
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