First Regulated Ethereum Futures Launched in UK
May 14, 2018
Crypto Facilities, UK-based crypto trading platform, has launched the first regulated futures contracts at Ethereum (ETH), the world’s second largest digital currency by market cap.
Crypto Facilities regulated by the Financial Conduct Authority (FCA) in Great Britain started Ethereum contract trading on Friday. They will allow for investors to take short or long position on crypto which is reported to enhance their investment options and provide for more effective risk management.
With ETH futures the London-based company plans to extend the offering of its derivatives which currently includes Bitcoin (BTC) and Ripple (XRP) futures. ETH liquidity will be provided by trading firms Akuna Capital and B2C2 located in Chicago and London respectively.
CEO of Crypto Facilities Timo Schlaefer has stated:
“...The Ethereum network is the pre-eminent blockchain for smart contracts, and we believe this new trading instrument will attract more investors and bring greater liquidity to the marketplace.”
BTC futures were first presented at Chicago Board Options Exchange (CBOE) in December 2017. A week later Chicago Mercantile Exchange (CME) also began Bitcoin futures trading.
Lately the Federal Reserve Bank of San Francisco has published a letter saying that BTC price drop after $20,000-max level was caused by launch of Bitcoin futures at CBOE and CME. The letter says, introducing futures hasn’t resulted in price fall in a flash sue to low BTC trade volume at the market.