Bitcoin Global News (BGN)

August 31, 2018 -- ADVFN Crypto NewsWire -- It is finally here. No longer will the Crypto futures market be dominated by Bitcoin futures.

According to Cointelegraph, some sort of insider source close to the Chicago Board Options Exchange told Business Insider that CBOE plans on launching Ethereum futures by 2018.

In terms of the greater implication for the Crypto market, this could mean a drastic fall is coming akin to what we experienced with Bitcoin at the end of 2017. On the other hand, at this point, this could merely be speculation.

We have no direct evidence as to what impact Ethereum futures will have on the Crypto market because the market has never truly experienced any sort of Ethereum futures.

As of now, the only way to try to predict the outcome is to look at what happened in connection with the opening and closing of Bitcoin futures contracts and therefore, conclude that Ethereum futures will have a similar impact as alluded to above.

To recap, since last year in December, Bitcoin began falling from around $20,000 until it hit about $6,500 as Bitcoin Futures contracts continued to open. To add a bit of historical perspective, this was about half as severe as the famous Bitcoin crash of 2013, during which Bitcoin fell 71%.

This is not to say that the launching of futures contracts will not signal worse to come for the Crypto market.

Futures contracts can be said to be problematic by definition, in that they allow investors to speculate on an asset without owning it at all.

As many of you may know, this also means that this speculation can actually cause a rise or a fall in the asset’s price at any given time, depending on the specific volume of speculation, which can most likely be measured in coins traded based on CBOE’s involvement in the process.

On the other hand, all of this can still be considered to be speculation as even the idea of Crypto futures contracts is in its relative infancy.

Unfortunately, the only precise indicator of the effect that Ethereum futures contracts will have on the market is the launch of Ethereum futures contracts, coupled with any more specific information that CBOE releases on the event.

By: BGN Editorial Staff







 

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Ethereum (ETH)

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