ETH Futures: Bad for Ethereum, Good for Bitcoin, Says Tom Lee

Roman Schwartz
September 2, 2018

Citing people familiar with the situation, Business Insider reported that CBOE is planning to launch futures for ethereum by the end of the year. The media (Business Insider) became aware of the plan from CBOE's message to its market makers. By this logic, ETH futures trading will provide an opportunity for bears to short Ether.

The CME established BTC futures trading on 17th December after the launching of BTC futures by the CBOE.

"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..."

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Tom Lee, the co-founder of Fundstrat Global Advisors and a well-known bitcoin bull, has recently revealed he believes ether futures may be bad for the cryptocurrency, and good for bitcoin.

CBOE, the Chicago exchange that pioneered the listing of bitcoin futures in the US, has quietly begun telling market makers that it is close to launching a new cryptocurrency product: ethereum futures. If it happens, it could also lead to further investments in Ethereum products and might even lead to Ethereum ETFs. According to the report, the launch of the future is intended for the end of this year. They seem to continue the trend with the proposed Ethereum futures contract, with the contract based on Gemini Exchange as an underlying market. The Securities and Exchange Commission (SEC) in the USA commented about the Ethereum in June this year that it is not a security. He mentioned in December 2017 that a number of cryptocurrency products which include futures for Ether and Bitcoin Cash could come as the market evolves and matures. Compared to the CFTC's guidance in 2015 which classified bitcoin as a commodity, Ethereum has remained in a gray area with many saying the cryptocurrency is more centralized and might be deemed a security.

However, in July, the head of the competing exchange CME Group Terry Duffy, made it clear that he did not want to launch futures on Ethereum and other altcoins due to their volatility, so far.

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