With nearly everyone monitoring Bitcoin’s upcoming halving, derivatives trading platform ErisX has stolen the show by unveiling the first U.S. based Exchange-traded Ether futures contracts according to a Monday announcement by the company.
The first-of-its-kind derivatives product approved by the U.S Commodity Futures and Trading Commission (CFTC) is set to give both individual and institutional investors access to physically delivered futures contracts based on ETH-USD with monthly and quarterly expirations.
ErisX had launched a similar product for Bitcoin, with close competitors such as Bakkt, and LedgerX also offering a related product for BTC. Now, though, investors now finally have access to the second-largest cryptocurrency, with a $20.8 billion market cap.
On the benefits of bring launching such a product for ETH markets, ErisX expressed a conviction that it would unlock the cryptocurrency to a wider range of investors including, speculators, intermediaries, hedgers, miners/validators, and commercial users.
Additionally, a transparent and regulated market will provide a channel for risk management to asset owners, market makers, and miners or validators when Ethereum 2.0 finally goes live.
The new product being launched by ErisX is coming just over a year after an anonymous official of the U.S CFTC revealed that the commission would approve an Ether-based futures contract if the crypto industry presents a proposal in that direction.
Then, Hegion had reported the official as confirming that the commission would get “comfortable with an ether derivative” being under its jurisdiction, and that “there’s a good chance that it would be [allowed to be] self-certified.”