CryptoFacilities which launched Bitcoin futures in 2015 and later Ripple futures in 2016 is now launching Ethereum futures. The UK-based firm is regulated by the Financial Conduct Authority in the UK and will start trading the Ethereum futures today at 4pm UK time. The first batch of the Ethereum futures has a potential impact beyond the startup backed by a cryptocurrency group String Ventures. CryptoFacilities have been involved in futures trading for a long time having supported CME group when it was launching its own Bitcoin futures in 2017.
According to Timo Schlaefer the founder and CEO of CryptoFacilities, as the number of companies engaging in cryptocurrency futures increase the Ethereum futures show an increasingly mature state of digital assets. Timo added that:
“Bitcoin has now become mature as a financial asset with a futures market in the past one year. Ethereum is likely to follow that path this year.”
A Chicago-based company Akuna Capital will provide liquidity for CryptoFacilities Ethereum futures and will work to see this much-needed product fill the gap in the futures market. Toby Allen, the head of digital assets at Akuna Capital, outlines the importance on this new venture adding that:
“Addition of a futures product will enable crypto traders to consider both long and short-term positions in Ethereum. More to that this is another leap in the development of the cryptocurrency asset class.”
Ethereum has had a positive development. In March ConsenSys announced a partnership with TrueDidital to develop a benchmark price for ether digital currency which was a move geared towards creating their own futures. While ether has dropped by 2 percent since yesterday its still trading above the 700 dollar mark. The digital currency had dropped massively in January when there was a lot of regulatory talks.
Even though there might be some regulatory uncertainties as to whether Ethereum qualifies as security in some jurisdictions. According to Schlaefer, the futures are actually a cautious light: “Whether Ethereum is a security or not, it’s a matter for different jurisdictions to decide. Our company CryptoFacilities is a derivatives platform which complies with the applicable and available regulation.”