Ether, the second-largest cryptocurrency in the world surpassed its all-time high of $1700 this weekend, once again proving its mettle as a solid player in the crypto markets. The price of already rallying Ether was further accelerated by the launch of Ethereum Futures trading on CME.
Chicago Mercantile Exchange announced the launch of much-awaited Ether futures contracts on its platform.
CME Launches ETH Futures Trading, 77 Contracts Already Traded
CME, one of the leading exchanges to provide crypto trading’s services, launched Ethereum futures trading as announced in December 2020. The Ether futures trading went Live on Sunday, February 7th, with the opening contracts price of $1669. As per numbers provided by Skew around 77 contracts have been traded so far.CME is the first firm to release regulated ether futures contracts. It is expected that the product may attract a lot of institutional investors looking to further increase their digital assets investments.
Ethereum Futures contracts are a derivative product in which an asset is sold at a specified price on a specific future date. The Futures need to be sold before the expiration date. The difference in the strike price and the actual market price of the asset at the given time determines the profitability of the investment. The Ethereum Futures on CME are regulated by Commodity Futures Trading Commission (CFTC), a US federal body.
In recent months there has been a massive influx of high-value institutional investment in Bitcoin. Tech behemoths like MicroStrategy, Square, PayPal, Grayscale, Galaxy have shown great interest in Bitcoin, Ethereum is also gaining popularity among institutional investors. Grayscale, a leading asset manager, has added Ether worth $38 million to its holdings. Ethereum is also gaining a lot of mainstream attention as it is one of the most widely used blockchain and serves as the foundation of DeFi space. With growing attention to Ethereum and increased adoption by financial players, it is quite likely that more investors would like to explore Ether.
Crypto experts foresee massive returns in Ethereum investment as the cryptocurrency is in an earlier stage of evolution and has not reached its full potential.
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