One year after the launch of the first futures contracts on the currency "Future Contracts", the currency of etherium is about to be the second digital currency traded futures system platforms.
In this regard, cointelegraph published an analytical article on this issue which we convey to you in the Arab Folio.
The Chicago Board Options Exchange (CBOE) is the same platform that launched the future Betquin contracts in December last year. At the same time CBOE is waiting for the green light from the CFTC to launch futures contracts For the Etherium Options by the end of 2018.
CBOE will launch its futures contracts for etherium on the Gemini platform, a platform for the digital exchange of the Winklevoss Brothers Group, and also uses Futuristic Futures contracts.
At the moment, after the Securities and Exchange Commission announced its decision to consider the currency of the etherium is not "Security", which was announced in June, the roads remain paved for the launch of futures on the currency of the etherium.
Chris Conchanon, president of CBOE, welcomed the decision, saying that futures contracts on etherium had been a recent point since late 2017 and added:
"We are pleased with the decision of the Securities and Exchange Commission to make things clear for the etherium coin. This announcement laid the foundation stone for the launch of etherium futures, the issue we have been studying since the launch of the first Futures contracts in December last year.
After only three months, there is a real objection to the fact that this could pay off, much like the build-up of the 2017 release of petrochemical futures.
CBOE has indicated to Cointelegraph that it is already considering futures for the currency of the etherium, highlighted by the company's president's interview, "Cocanon | With Quarts in June, where he explained their ideas about digital currencies and the possibility of launching futures contracts:
"Atherom is one of the most liquid digital currencies on the market, along with Bitquin, and the market demand for etherium remains much higher than any other currency in the digital currency market.
We will be looking at the release of futures contracts for etherium in the short term, but there is a process that we must go through even before the release of such contracts. This process is something we talked to continuously with CFTC, and we certainly want to take steps along this process and make sure That everyone feels comfortable with the next product we will announce. "
According to Kuncanon, there is a huge appetite for futures for the currency of etherium.
Following the successful launch of the Futures contracts, CBOE hopes to use the same structure and structure of the Futures contracts and apply them to any futures contracts for digital currencies that may be considered in the future.
The CBOE did not disclose any further details at this time, saying the relevant information would be announced in due course.
What can happen to etherium and the digital currency market?
Although the exact details of when we can expect to see these futures contracts for etherium have not yet been revealed, the likelihood of these new offers has had a natural impact on the value of several digital currencies.
The price of etherium was slightly reversed on August 31, which can be attributed to these initial reports, and the price of the Betcairn showed a similar pattern of movement, with a strong rally on the same day, according to the digital currency market data from Coin360.Io On 31 August to 1 September 2018.
"Reactions to etherium futures"
In response to the first reports of the CBOE plans, the founder and partner of the Fundstrat Foundation, Tom Lee, told Business Insider that the futures contracts for etherium would have a direct negative impact on the price of the digital currency.
Because in December of this year, if there is a downward trend for any aspect of the digital currency market, they can execute Short Order orders on the currency of the Betquin and they will also be able to execute short orders on the currency of the etherium, which means that net The total short-order "short-order" in the Futures Futures contract will decline in turn.
The question now is, is this good or bad?
It is not easy to predict what can happen in any market, and this is especially true for the digital currency market. However, such large moves by mainstream financial institutions seem to affect the price of digital currencies.
And F.
In this regard, Cointelegraph writes to market analyst market analyst Mattie Greenspan to get a well-thought-out view on how the release of futures contracts for eTHERIUM could affect the price of the digital currency.
Mattie Greenspan was optimistic about this possibility, saying Wall Street was working hard to build bridges to the digital currency market, calling the launch of the futures contracts as a crucial step.
"Pro-opinion"
While some people on social media have cited concern that "short order" orders would cause the etherium value to be impaired, Greenspan offered a counterpoint to this point:
"The ability to execute short order orders is a critical element in price discovery, so this is ultimately a healthy thing for the market."
Furthermore, Greenspan believes that future etherium contracts would put digital currencies in the spotlight, which could attract new investors in deep pockets.
The market analyst also believes that this could be a knock on other digital currencies.
"The prices of digital currencies are strongly linked to each other, so anything good for the currency of the etherium must be good for the biotech and vice versa.
So far, the volume of futures liquidity on Bitquin has been relatively small and insignificant for the rest of the market, but with the changing interest of investment institutions, we should see larger volumes of liquidity and new ways to trade them "
While the same analyst offers much more optimistic predictions of things to come, there is also those that have a more cautious view of the potential release of futures for etherium.
"Strongly opposed to futures contracts on etherium"
"There is a possibility for certain investors to do short sales on Etherium, which could have some serious consequences for the investors," said Philippe Nan, chief executive of Wealth Chain Capital, a spokesman for Cointelegraph. Companies that have launched ICO IPO projects on the Plockin etherium platform.
Read more Tom Lee believes that trading futures for etherium may harm the currency, but it can be beneficial to Betcuen
Nan is similar to the issue of the launch of Futures contracts for foreign currency and foreign exchange markets for about 30 years. Futures markets have had a great influence on the markets.
"The year 2018 saw a dramatic shift in the behavior of digital currencies mainly because of the emergence of futures contracts for Bettkin, and the charts are different, and obviously there is manipulation in the market and" whales "dominate the market in both cases.
Someone who earns a lot of money is like FX Markets in the 1980s and 1990s where it was easy to influence markets through "long" and "short"
In addition, Nan's approach to risk is overshadowed by projects that have been capitalized through initial offerings of ICO through ERC 20 Tokens on the Plockin Etherium platform.
He added the CEO of the "Wealth Chain Capital":
"I'm concerned about etherium on two levels. First, the market cap for the ethrium is much smaller than the total market price of the Betcoin, so I think futures for ethrium could push it below $ 150 and maybe even $ 100.
In addition, 95% of the ICO projects raise funds through ERC 20 Tokens on the plucchin etherium platform.
Imagine if the ICO project financed its $ 20 million capital of etherium coins and stored it, and it suddenly fell by half, in which case I think those projects would rush into sales of the ethium in exchange for fortification or currency to Protect their investments. "
