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Deriving Ethereum [ETH]’s future in Derivatives market

Ranjitha Shastry

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Deriving Ethereum's [ETH] future in Derivatives market
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Ethereum has grown swiftly over the last few months with a sprouting transaction volume and market capitalization. On January 15th, 2018 Ethereum’s market cap was at its all-time high with $134 billion, making it the second largest crypto-asset.

Ethereum is power platform on which one can build one’s own cryptocurrency product. ERC20 token standard came into limelight at the time when the regulation was needed for security reasons. Currently, there are 88843 ERC20 Token Contracts [etherscan], which means all of these tokens of different types will typically work the same in any place within the Ethereum system. Collectively, Ethereum can be termed as the backbone of the growing altcoin market.

Unocoin, India’s leading Bitcoin company recently wrote the attributes of Ethereum’s future. It stated that the most natural next move is for Ethereum to enter the futures derivatives market following Bitcoin’s entry into the same. Bitcoin entered the contracts market in December 2017. It trades thousands of times a day, representing tens of millions of dollars of the digital currency.

When Bitcoin has the potential to open up to a whole new world of investors, perspective a lot of the institutional variety, which tends to have extensive pockets. Then Ether which is linked to its Ethereum blockchain is a business, which also has the prospect to be introduced in derivatives as it can be a signal in reaching the more professional corners of Wall Street.

Chicago Board Options Exchange [CBOE] now has the infrastructure to add Ethereum futures as Gemini [CBOE’s partner on cryptocurrency futures] has provided Ethereum trading since at least 2016.

Commenting on cryptocurrency entering the derivatives market John Deters, Chief Strategy Officer of CBOE said:

“We’ve really come to the conclusion recently that cryptocurrencies are here to stay.”

Unocoin’s article also mentions how Ethereumn’s price will impact whenever it decides to be a part of CME and CBOE. Bitcoin’s peak price coincided with its introduction into contracts market on CME. This boom was a result of the optimistic investors and it also saw a subsequent fall.

According to Unocoin’s article:

“The prices might skyrocket. When Ethereum does become part of the CME and CBOE, there is a high chance to see a price gain of as much 50% from the current levels. For Bitcoin, the jump was about 57% prior to the CBOE announcement.”




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Ranjitha Shastry is a part of AMBCrypto's News Reporting Team. Having done her major in Journalism and mass communication, she is passionate about business and economic journalism.

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