Ethereum [ETH] Gains 6% As Possibility of CFTC Approved Futures Contract Comes To Light

Ethereum gained nearly 6.41% w.r.t. Bitcoin [BTC] on 6th May 2019. The price of Ethereum rose from 0.02840 BTC to 0.0302 BTC. The price of Ether (ETH) at 4: 30 Hours UTC is $172.

The rise was seen in the last three 4-hour trading session. A key market indicator of the price rise is the reports coming in of CFTC in the US being “comfortable” with an Ethereum based derivates contract.

Also Read: Ethereum Price Analysis: Blasts Through Short-Term Hurdle – Stays In The Green

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ETH/BTC 4-hour Chart on Coinbase (TradingView)

CFTC Ethereum Futures?

Reportedly, in the US, a Commodities Futures Trading Commission (CFTC) Senior official has expressed that Ethereum Futures might be a possibility in the near futures. The official told the media,

“A derivatives exchange comes to us and says ‘we want to launch this particular product.’ … If they came to us with a particular derivative that met our requirements, I think that there’s a good chance that it would be self-certified by us.”

On Ethereum, he said that they are “comfortable” with an Ethereum derivative. However, he reiterated the fact, that the approval or disapproval is solely decided upon by the review of a specific application.

Bitcoin Futures have been trading in the market since December 2017. Reportedly, the volume of trading on these derivates is equivalent to the actual trading volume on global exchanges due to the ‘fake reported volume.’

Moreover, an Ethereum based derivate contract will improve the price discovery characteristics of Ethereum and also increase investor confidence in the cryptocurrency as the regulatory bodies would oversee the transactions. Moreover, it also highlights the greater degree of decentralization on Ethereum due to its early adoption and a ubiquitous GPU mining protocol.

Do you think that Ethereum Futures demand will be as high as Bitcoin Futures? Please share your views with us. 

The post Ethereum [ETH] Gains 6% As Possibility of CFTC Approved Futures Contract Comes To Light appeared first on Coingape.

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