The Chicago Mercantile Exchange (CME Group) is finally launching the long-awaited ETH futures. The derivatives exchange reported in a Twitter post on Sunday that ETH futures will be trading today.
The announcement of the launch of futures on ETH took place in mid-December 2020. As with BTC futures, the new product will be closed in fiat currency and its price will be determined according to the CME CF Ether-Dollar Reference Ratio Index. The value of each contract per month will be 50 ETH, which is roughly $ 80,000 at the current exchange rate.
The CME website offers a fairly comprehensive list of liquidity providers for the new product. These include BlockFi, Galaxy Digital, Genesis Trading, CoinShares, NYDIG and more. Some of the firms on this list are also liquidity providers for other CME products. It is worth remembering that this is a kind of first product. Before the current development, institutional and qualified traders could only access Bitcoin futures.
In early February, the ETH price reached $ 1,500 for the first time and even managed to climb up to $ 1,700. Currently, the second largest cryptocurrency is trading at $ 1,620. Some analysts worry that the launch of ETH futures could put pressure on the price of the coin.
“Personally, I’m not getting into the markets here at all,” analyst Michaël van de Poppe told Twitter followers on Sunday, and his strategy was to make a profit lately:
“I don’t know how markets will react to CME futures from tomorrow.”
Van de Poppe added that in the event of a reversal, the support levels are likely to be significantly below the spot price. Support is $ 1,100-1,175 and $ 875-950, respectively.
In addition, IS Investment International Markets Director Şant Manukyan created an optimistic impression on ETH futures. Emphasizing that ETH futures are different from Bitcoin futures, Manukyan used the following statements: