Ethereum Price Surge Coming? ETH Futures May Be Heading To Wall Street
Ethereum (ETH) price may be poised for some action as hinted-at trading futures are starting to look like a reality. CBOE has been hinting for some time at its work to create an ETH futures market, and new reports are coming out that see more sources confirming the work and an impending launch.
Contrary to some beliefs, this would not be the first ETH futures contract launch (nor the first place one can establish a short position on ETH price). Those opportunities are open on UK-based exchanges, as well as BitMex which has opened futures trading for several other coins like Cardano (ADA) and Tron (TRX).
What Do ETH Futures Mean for ETH Price?
It means a lot of things, but it legitimized ETH trading in the U.S. market and allows a pathway for institutional money to put long and short-term bets on ETH going up or down. The futures market provides more liquidity to an asset that may more firmly paint an accurate price of market value; since currently ETH trading is limited to buying and selling market orders.
It’s also the first step in establishing larger market opportunities like ETFs; the topic of much news lately on Bitcoin. A futures market give ETH trading some regulatory background and existence, making it a more likely play for an SEC approval of an ETF.
But the price is what we want to look at and though this opens the door to more easily gotten short positions, it will likely create a short-term price spike for ETH. Why? Because it shows that the wider financial market is interesting in placing speculative bets on ETH outside of “crypto exchanges” which can be confusing, intimidating, or in some cases, illegal for some to trade on. In short, it establishes ETH as an asset worth speculating on; like markets for stocks, commodities, and foreign currencies.
The media attention alone should bring volume to ETH, with a price hike. Down the line, however, it means that Wall Street can use its leverage to move the price up or down. And the Ethereum team failing to deliver on an important technical deadline, or a big name partner in the Enterprise Ethereum Alliance dropping out, could see short sellers flock in, betting on a price drop.
For now, we’ll wait for final confirmation, but it seems that Ethereum is following in Bitcoin’s footsteps and heading to Wall Street.