Tom Lee, the notorious bitcoin bull who has a $25,000 price target for the coin, told Business Insider that ether futures could hurt ether and actually benefit its larger rival, bitcoin. If this is true, it could mean a lot for Ethereum.
Tom Lee, the co-founder of market strategy firm Fundstrat Global, believes a similar narrative to the Bitcoin futures launch will play out where there might be an initial boost in price, but ultimately more downward pressure on Ethereum's price.
Someone familiar with the situation mentioned to Business Insider that CBOE will base their its futures on Gemini's underlying market. Gemini now supplies pricing data for CBOE's bitcoin futures, which first launched last December.More news: Theresa May boosts Uhuru Kenyatta's graft fight
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Notably, Bitcoin futures were introduced by CBOE in December 2017. Technically, Future is an agreement to organize buy and sell an asset on a specific future date at a specific price. But after they came online, the price of bitcoin tanked and it's down more than 70% since hitting an all-time high at the end of 2017. With this, it consolidates investors to speculate on the BTC price except owning BTC. It has been exploring the $29 billion market value cryptocurrency in many different ways, as well as experimenting with related products such as bitcoin futures. At the Winklevoss Brothers' Exchange, they also launched the BTC Futures.
The Cboe exchange is inching ever closer to securing the futures contracts for ether and is apparently just waiting on the go-ahead from the US Commodity Futures Trading Commision (CFTC). After making a name in the crypto community for launching bitcoin futures, Cboe is now reportedly preparing to launch ETH futures.
However, another point worth noting is that Bitcoin futures offered by the Cboe are cash-settled, meaning that there is no transfer of the underlying asset. Lee says that the same may happen to the Ether futures. Earlier in June, one of the SEC officials opined that Ethereum was not a security. The introduction of bitcoin futures, for example, was presumably one of the reasons why it rose sharply for a short time.