CME Launching Futures In Ethereum!
CME is launching the futures era in Ethereum. The Chicago Mercantile Exchange (CME) launches the transaction, which is the first to launch BTC futures.
While Bitcoin futures could not be traded on stock exchanges until December 2017, the Chicago Mercantile Exchange (CME) was the first exchange to announce that it would launch Bitcoin futures. Founded in 1898, the stock exchange is also in the first place in the world in terms of futures.
Until December 2017, there was no possibility for investors to buy a “short position contract” in Bitcoin. In a sense, trading consisted solely of buying and selling. In other words, investors could not create a position for the sale of a commodity they did not hold and make the price decrease.
CME, First Exchange To Launch Bitcoin Futures
On December 18, 2017, as a result of CME’s launch of Bitcoin futures, Bitcoin (BTC) entered a long bear market that would last for 3 years. Over time, other exchanges have also launched Bitcoin futures.
So what happened after this date? The beginning of Bitcoin’s big drop coincided with the date when Bitcoin (BTC) futures started on the CME exchange on December 18, 2017.
So much so that, according to the information that emerged much later, US President Donald Trump gave CME a futures license to prevent Bitcoin increases.
Futures Period Begins For Ethereum!
Chicago Mercantile Exchange (CME) recently announced that futures will be launched for Ethereum as well.
The statement of the stock exchange was as follows:
“CME Group’s experience and knowledge of bringing Bitcoin to the market enabled us to launch an Ethereum Index. Ethereum is based on awesome blockchain technology. CME CF Ether-Dollar rates, a standardized reference rate and spot price index to bring trust to any trading strategy. Trusted exchanges such as Bitstamp, Coinbase, Gemini, itBit and Kraken will provide pricing data to bring our regulated rates to market.Both ETHUSD_RR and ETHUSD_RTI are registered transactions under the European Benchmark Regulation (EU BMR).
Ethereum futures: Coming on February 8, 2021.”
What to Expect for Ethereum?
On the subject, analysts share different views. Looking more positively, analysts say:
“Ethereum is currently trading on futures contracts on many bulky exchanges. The impact of CME will not be big this time. In 2017, CME triggered a major collapse as it offered the first” short contract “for Bitcoin. Futures contracts, which have reached billions of dollars in volume by many exchanges, are already actively available.
Another part that approaches the issue more negatively is as analysts stated; “CME is the world’s largest futures exchange. Therefore, the high-volume turbulence it will create will trigger the existing exchanges and the price of Ethereum will crash.”
On the other hand, although there is a possibility of a decrease in both views, he thinks that this will not be the same as in 2017 and may create fluctuations. Analysts are recommending investors to carefully watch the February 8, 2021 date for Ethereum and conduct a risk analysis.