Business Insider, claims that according to undisclosed sources, the release of the futures is planned for the end of 2018. Based on Gemini’s underlying market the option follows the policies of the exchange based similar to the Bitcoin (“BTC”) futures market which was launched in December 2017. The BTF was also based on the famous exchange owned by the Winklevoss twins.
ETF – Ethereum Trading Fund
For one, this launch will bring forth a positive valuation of Ethereum as it will enable an increase in the trading volume by using a new financial instrument. Secondly, the support from the CBOE will open doors for large investors, who have been indecisive regarding this cryptocurrency.
After the launch of futures in Bitcoin, this cryptocurrency began a bearish streak from which it has not been able to recover, however, the increased exposure to traditional markets is a favorable opportunity for any cryptocurrency.
However, before the ETF comes into action it will require approval from the Commodities Futures Trading Commission (CFTC). According to the Business Insider, their source disclosed that CBOE is waiting for the same. It is also important to highlight the legal safety of Ethereum futures trading. On June 14 a chairman at the Securities and Exchange Commission (SEC) concluded that Ethereum was not a security:
“Applying the disclosure regime of the federal securities laws to the offer and resale of Bitcoin would seem to add little value. And putting aside the fundraising that accompanied the creation of Ether, based on my understanding of the present state of Ether, the Ethereum network and its decentralized structure, current offers and sales of Ether are not securities transactions. And, as with Bitcoin, applying the disclosure regime of the federal securities laws to current transactions in Ether would seem to add little value.”
The traders could now relax some more as the legal consequences of being classified as security could significantly disincentivize the markets. In this regard, CBOE Global Markets president Chris Concannon commented on his satisfaction:
“This announcement clears a key stumbling block for Ether futures, the case for which we’ve been considering since we launched the first Bitcoin futures in December 2017.”
There is no exact date for the launch yet, but Ethereum’s fans have responded positively to the news despite not having the same immediate hyper-enthusiasm as when the announcement of the Bitcoin futures launch came out.