Ethereum futures to enter the market soon?
- Commodities Futures Trading Commission exec believes Ethereum futures are likely to be launched in the future.
- While the futures would theoretically increase institutional interest in the Ethereum market, it could also cause a price collapse.
Heath Tarbert, the chairman of the Commodities Futures Trading Commission (CFTC), said that Ethereum futures are likely in the future. He said:
We are doing a lot in the digital asset space. We are seeing exchanges started to list; certainly, we have seen Bitcoin futures, both cash-settled as well as physically-delivered. My guess is we are going to see Ether futures as well. And as things start to migrate into the commodity space, we will see even more.
Adam White, the president of Bakkt, also said that the CFTC would theoretically approve Ethereum futures. However, specific details regarding when or where Ethereum futures will be launched have not been disclosed. Presumably, the crypto community will perceive the launch of Ethereum futures to be good news. For instance, the futures would theoretically increase institutional interest in the Ethereum market and would make the market more mature and reputable.
On the other hand, Ethereum Futures could also be bad news for the Ethereum market. Back in 2017, Bitcoin went through a significant price collapse after the launch of Bitcoin futures. Many in the community are worried that the launch of Ethereum futures could crash the Ethereum market via substantial short-selling pressure.
Author
Rajarshi Mitra
Independent Analyst
Rajarshi entered the blockchain space in 2016. He is a blockchain researcher who has worked for Blockgeeks and has done research work for several ICOs. He gets regularly invited to give talks on the blockchain technology and cryptocurrencies.
