Despite the sharp decline in the cryptocurrency market since Bitcoin's $20,000 surge, BTC futures activity on the Chicago Mercantile Exchange (CME) has shown a steady increase, establish new highs over recent months.
Challenging the general consensus, futures instruments have entrenched themselves in the crypto trading sphere. The U.S. Commodity Futures Trading Commission (CFTC), responsible for overseeing this budding marketplace, has recognized this evolution. An insider from the CFTC hints that it may soon give the green light Ethereum (ETH/Ether) futures.
CFTC Appears Receptive to Ether Futures
A CoinDesk exclusive features a 'senior official' familiar with the CFTC, revealing the regulatory body's welcoming stance towards Ethereum. They noted a readiness to consider Ether derivatives under its regulation, echoing the SEC's perception of ETH as not being a security.
This announcement follows the CFTC's 'Request for Input' (RFI) in December, a time when Bitcoin hovered around $3,150.
Post-RFI, the agency received around 35 comments from key players like Coinbase and Circle, as well as Craig Wright. While not all feedback was favorable, the CFTC sought to understand the full spectrum of existing challenges and potential cooperation pathways for Ethereum-centric products.
It's important to note that CME, alongside its key competitor, the Chicago Board Options Exchange (CBOE), hasn't shown explicit interest in supporting Ethereum just yet. In 2018, Terry Duffy, the CEO of CME Group, told Bloomberg expressed concerns about reputational risks linked to crypto involvement, advising against hasty product listings for Bitcoin or other digital currencies, Ether included. However, given Bitcoin's soaring interest on CME, rolling out a similar offering for Ethereum seems like a strategic progression.
Additionally, ErisX, a more crypto-focused startup led by the seasoned Wall Street figure Thomas Chippas, has shown interest in launching an Ethereum futures contract. In a February comment to the CFTC, Chippas highlighted how regulated Ethereum futures would align with the CFTC’s objective of promoting 'open, transparent, competitive, and financially sound derivative trading markets, while curbing fraud and manipulation in line with the Commodity Exchange Act (CEA).'
Following the CoinDesk report, Ethereum's value has notably surged. As of this moment, ETH ascended by 10.4%, reaching $180, a 2019 pinnacle, while most other cryptocurrencies have seen minor gains.
A Wave of Positive Ethereum Developments
Regardless of the immediate realization of Ether futures, this fresh update aligns with the series of favorable advancements surrounding Ethereum.
Recently, Ethereum core developers announced meaningful progress towards transitioning the blockchain to a Proof of Stake (PoS) system, termed 'Serenity.' Justin Drake from the Ethereum Foundation stated that phase zero specifications are 'on track' for completion by June 30th. Once finalized, developers will embark on the next development phase. Drake mentioned:
'We're progressing as expected. Additionally, code simplifications are underway, significantly aiding the bug-finding process.'
For those not in the know, phase zero, or 'Beacon Chain,' will involve validators, rather than miners, securing the network by staking Ether and participating in governance.
These advances occur as Ethereum, and its offshoot private chains, gain mainstream momentum, notably among major corporations. For example, late-April speculation indicated Samsung's plans to launch an Ethereum-based blockchain, potentially integrating a new token within Samsung Pay, their fintech initiative.
