London-based cryptocurrency derivatives broker Crypto Facilities announced the launch of futures contracts on Ethereum. The company announced the start of trading in new derivatives based on Ethereum in its press release.
Ethereum futures will allow crypto traders to take short and long positions on cryptocurrency, investors to bet on the price of a currency, without the risks usually associated with trading the underlying assets, according to Crypto Facilities. The company has many years of experience in the traditional financial sector and with futures contracts. Since 2015, the trading platform has provided clients with trading in forward contracts for the price of Bitcoin, and since 2016 it has provided futures for XRP. Moreover, the firm provides CME Group with data to calculate its Bitcoin index, which the Chicago exchange uses to calculate the price of its own Bitcoin futures. CryptoFacilities is regulated by the UK Financial Conduct Authority and launched Bitcoin futures trading on the CME Group late last year. Let us remind you that CME Group Inc. The largest North American financial derivatives market, based on the union of the leading exchanges in Chicago and New York.
Assistance in securing futures contracts will be provided by Chicago-based liquidity providers Akuna Capital and B2C2. Toby Allen, head of Akuna, noted that the launch of Ethereum futures is a giant leap for the digital asset class, and he expects the new derivatives to fill a gap in the underlying asset trading market. B2C2 founder Max Boonen also noted that the ongoing process is a natural next step for the evolution of Ethereum.
It was previously reported that deVere Group founder and CEO Nigel Green predicted the price of ETH at $2,500 by the end of this year. This is because Ethereum has become a platform for new issuers due to its efficient and popular smart contracts. Experts note that increased trading volumes on derivatives exchanges should bring spot prices into a more stable state.
Critical experts have previously expressed the view that the launch of Bitcoin futures could have caused a subsequent fall in its price, since it gave pessimists in traditional markets a tool to express their distrust of the asset. Now similar remarks can be heard from some skeptics regarding Ethereum futures.
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