On the Chicago Commodity Exchange (LIGHT) starts trade on Ethereum futures with minimal volume 50 Eth
Futures on Ethreum are now available for machine traders.
On Monday, February 8, the Chicago Trade Exchange (LIGHT) starts trading on Ethereum futures on its platform. The size of the futures contract is 50 ETN, which at the current course of the token is about $ 80 thousand. The minimum transaction size is 5 contracts, and the price pitch is $ 0.25 per coin or $ 12.5 per contract. Bidding will be kept daily, except for the weekend.
Futures on Ethereum will be engaged in commercial futures trading commission (CFTC). Since the contract is in US dollars, the traders do not need an electronic wallet.
The CME Group website lists a number of liquidity providers for ETH futures, some of which also provide liquidity for futures and options for bitcoins of the Exchange. Among them are Blockfi, Galaxy, Genesis, Coinshares and Nydig.
Why it is important: tell the main thing
The emergence of futures contracts for Ethereum on the Chicago Commodity Exchange, announced in December 2020, will play an important role in the development of crypto industry.ETH futures confirm the status of a token as a commercial asset. The appearance of futures on ETN on the commodity exchange puts the point in the endless dispute of cryptoprojects and the US Securities Commission (SEC) in the question of the nature of cryptocurrency. And if the regulator considers the tokens as securities, then trading with futures contracts for cryptoaculation proves that cryptocurrency is still a product.
Back in 2019, the former chairman of the Commission for Trade Futures Hit Tarbert, speaking on the financial summit of Yahoo, said that cryptocurrencies should be considered as a product.
Recall that in May 2020, several large blockchas companies united in the Alliance for further negotiations with the US Securities Commission (SEC). Thus, the Union of Posa arising in this way promotes the idea that companies using blockchain should be considered as service providers or infrastructure providers, and not as financial product providers. This means that after the startup of the updated version of Ethereum 2.0, the ETN tokens will continue to be considered as a product, and not as a security, even after changing the algorithm with Proof-OF-Work on Proof-of-Stake.
Ether can respond with a drop
Expert opinions on how the launch of futures will affect the ETH course, divided. Part of the analysts are carried out parallels with the launch of the supply futures on Bitcoin. Then the market has implemented a classic script "buy on rumors, sell on facts." It is possible that this time the story will repeat. Read more about why the price of the ether can fall today, read in our review.
At the other end of the spectrum, those who believe in the further growth of ETH after launching futures. Their main argument is the influx of institutional money in cryptocurrency. For example, the head of Galaxy Digital Mike Novograpz is sure that Ethereum in the current bullish cycle will reach $ 2,600. Technical and fundamental factors will contribute to growth.
The POST for a laptop starts trade futures on ETN - which this means appeared first on beincrypto.