The Chicago Mercantile Exchange (CME) has launched Ethereum futures trading on its platform, three years after launching Bitcoin futures.
Following the ether futures launch between Sunday and now, 77 Ethereum futures contracts have been traded already.
Reacting to the number of Ethereum futures contracts initiated on the CME platform, Director of Product at crypto data and market intelligence company Messari Qiao Wang advised eth holders to hold on to their stash as there would be possible price rally up of ether up to $20k.
“ETH is going to $5k-20k by the end of this. There’s absolutely no reason to sell your long term holdings here,” he tweeted.
Futures are a form of derivatives where parties enter a contract to sell or buy an asset at a specific price and date. The contract must be settled upon reaching the agreed date and time.
The current price of bitcoin is $39,272.38, climbing up by 1.31% in the last 24 hours. Bitcoin has a current market cap of $731.35B and market volume of $50.77B. In the last 24 hours, bitcoin has dropped to $37,388.34 and experienced a $40,921.31 high. Currently, 18,623,081.25 bitcoins are in circulation.
Stats and Image from Coin Desk
This recent move by CME may likely attract institutional investments to Ethereum and might boost the value of the crypto.
According to CTO of blockchain solutions provider Komodo, Kaden Stadelmann, “Bitcoin and Ethereum are obviously in a different stratosphere when looking at current crypto adoption, but I do believe this is only the beginning of futures trading expansion among large institutions. We will see more assets supported and more players in the mix.”