Speaking with Business Insider reporters, Lee, who has become well-known, if not near-infamous for his seemingly undying bullish sentiment on Bitcoin, noted that Ether futures will allow speculators to weigh down on the price of ETH.
That's because the launch of ether futures would provide an easy way for ether bears to bet against the coin. The traders are not sure whether to classify this as a positive or a negative development considering the fact that it was the introduction of the BTC futures that marked the beginning of the fall in the BTC prices.More news: Dutch police shoot suspect after stabbing at educate field
Let us not forget that be it capital market or crypto market, the price of the assets are highly volatile as they are more inclined towards the macro fundamentals.
Since December of this year, if one was bearish on any aspect of crypto but did not want to own the underlying, they could short btc. The exchange holding company previously based its Bitcoin futures on the Winklevoss's New York-based cryptocurrency exchange as well.
To start out buying and selling futures on Ethereum trade should get hold of the approval of the Fee on commerce commodity futures U.S. (CFTC). CBOE has already requested permission from the commission and will introducing ETH futures trading once it has received a response. Since Bitcoin futures debuted in mid-December of previous year, prices tanked, with Bitcoin briefly touching $20,000 before tumbling to $7,200 as it stands today.More news: European Union warns Irish border issue could still sink Brexit deal
Similar to the impact of the initial Bitcoin futures market, which initially helped propel Bitcoin to above $19,000 before aiding in its rapid drop, some analysts view Ethereum futures as a big plus for second largest cryptocurrency.
Back in June, the price of ETH spiked when an SEC representative claimed ETH was not a security, and that the agency wasn't planning to regulate it as a security.
ETH price 00 is yet to react to the CBOE reports, continuing to trade below $300 while posting insignificant gains below 0.5 percent which match those of Bitcoin Friday.More news: Colin Kaepernick's Collusion Grievance Against NFL Headed to Trial