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The Cboe May Soon Release An Ethereum Futures

Business Insiders has suggested the Chicago Board Options Exchange (Cboe) are close to releasing an Ethereum futures. The exchange that launched the first Bitcoin futures is preparing the market which has been suggested for release by the end of the year. Investors will no longer need to buy and sell Ethereum as an asset to bet on the price.

The futures market works differently in which an agreement is made to buy and sell Ether on a set date at a specific price. The purpose is to allow investors to speculate on the future price of Ethereum without owning any of the assets. Once entered, the parties must buy and sell Ether at the agreed price, regardless of the current price of Ethereum.

A futures contract can be used as a risk management tool to hedge against the risk of changing prices and can be used in portfolios to balance out these fluctuations. Taking out a long position means you agree to buy Ethereum at a specific price at the time of expiration. A short position works the opposite in which you agree to sell Ethereum at a set price on the contract.

Futures can be speculated as a positive move for the cryptocurrency industry. The more institutional products and services that become available on the market, the more likely an improvement for Bitcoin, Ethereum and other coins is to occur. ETFs have not entered yet but more products and services such as the Ethereum futures is progression towards approval as regulation develops.

Don’t forget to head to BC Bitcoin if you are looking to sell Ether or keep informed on current news in the crypto space.

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