Bitcoin Global News (BGN)
August 31, 2018 -- ADVFN Crypto NewsWire -- It is finally
here. No longer will the Crypto futures market be dominated by
Bitcoin futures.
According to Cointelegraph, some
sort of insider source close to the Chicago Board Options Exchange
told Business Insider that CBOE plans on launching Ethereum futures
by 2018.
In terms of the greater implication
for the Crypto market, this could mean a drastic fall is coming
akin to what we experienced with Bitcoin at the end of 2017. On the
other hand, at this point, this could merely be
speculation.
We have no direct evidence as to
what impact Ethereum futures will have on the Crypto market because
the market has never truly experienced any sort of Ethereum
futures.
As of now, the only way to try to
predict the outcome is to look at what happened in connection with
the opening and closing of Bitcoin futures contracts and therefore,
conclude that Ethereum futures will have a similar impact as
alluded to above.
To recap, since last year in
December, Bitcoin began falling from around $20,000 until it hit
about $6,500 as Bitcoin Futures contracts continued to open. To add
a bit of historical perspective, this was about half as severe as
the famous Bitcoin crash of 2013, during which Bitcoin fell
71%.
This is not to say that the
launching of futures contracts will not signal worse to come for
the Crypto market.
Futures contracts can be said to be
problematic by definition, in that they allow investors to
speculate on an asset without owning it at all.
As many of you may know, this also
means that this speculation can actually cause a rise or a fall in
the asset’s price at any given time, depending on the specific
volume of speculation, which can most likely be measured in coins
traded based on CBOE’s involvement in the process.
On the other hand, all of this can
still be considered to be speculation as even the idea of Crypto
futures contracts is in its relative infancy.
Unfortunately, the only precise
indicator of the effect that Ethereum futures contracts will have
on the market is the launch of Ethereum futures contracts, coupled
with any more specific information that CBOE releases on the
event.
By: BGN Editorial Staff
News:
Ethereum
(ETH)
Ethereum
Futures
Cryptocurrency