Futures: CME launches trading in Ethereum futures
The longer announced Ethereum futures are now tradable. In the process, the second-largest cryptocurrency already made up a large part of the institutional investments in the previous week.
The Chicago Mecantile Exchange (CME) has given the go-ahead for trading Ethereum futures. The exchange had already announced trading in December last year. The opening price was 1,669.75 US dollars. The futures contracts are legal agreements to Bitcoin Superstar buy or sell the crypto asset at a predetermined price at a later date. According to media reports, 388 contracts have already been traded on the CME. In addition, institutional investors intensified their ETH investments in the run-up. Last week, around 245 million US dollars flowed into crypto assets. The second largest cryptocurrency accounted for 80 per cent of the cash inflows.
Bitcoin futures trading started on the CME just over a year ago
At the time, Nikolaos Panigirtzoglou, managing director of global market strategy at JPMorgan, noted that futures trading was up. At the time, he said:
There has been a gradual increase in activity in the underlying CME futures contract in recent days. This unusually strong activity in the last few days is likely to reflect the high level of expectation among market participants in the options contracts.
Nikolaos Panigirtzoglou, JP Morgan 2020
Recently, CME Group, together with Bloomberg, once again gained special attention when they stated in a report and video collaboration that Bitcoin is a „serious competitor“ to store of value gold. This is mainly due to institutional investors and investors who are increasingly diverting their funds from precious metals to Bitcoin funds. The Bloomberg strategist said even before the recent Tesla-fuelled Bitcoin rally that the cryptocurrency would move towards the US$50,000 mark. That is now within reach.