Chicago-based cryptocurrency derivatives trading platform ErisX has announced the launch of Ethereum-based physically-settled futures contracts that are regulated by the US CFTC.
In a blog post on Monday, the exchange revealed that the new futures are available for trading immediately with both monthly and quarterly expirations.
This is the first ETH-based futures contracts available in the United States market following the Bitcoin futures. ErisX was keen to point out that it has the first ETH-USD futures product ahead of other derivatives platforms including CME and Bakkt.
“ErisX is committed to being the leader in the cryptocurrency space by bringing to market an innovative and unified platform for spot and regulated futures,” the exchange announced in a press release.
“Trades are executed through the Exchange’s central limit order book, which ensures all submitted orders are treated equally and are cleared at the ErisX clearinghouse to eliminate counterparty risk. Block trading will also be available on ErisX’s Ether futures contracts.”
The launch of the ETH-USD futures is an addition to the already spot markets supported on the platform for Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. It is also the second futures product following its inaugural bitcoin futures product it launched back in December 2019.
A glance at the ErisX futures volume and interest page shows that Bitcoin futures have seen unimpressive numbers, casting doubt on the prospects of the newly launched Ether futures.
If the flagship cryptocurrency is struggling with gaining interest, it is highly likely that the second-largest asset will suffer the same fate.
However, there is reason to be optimistic about the launch of an Ether futures product. Ethereum is currently prepping to launch the highly anticipated Ethereum 2.0 network that will see the network migrate from its current Proof of Work consensus mechanism to the Proof of Stake.
Ethereum core developers are aiming at a summer 2020 launch. This means that the project is set to attract some interest from the public over the coming months. Considering this development, it seems that ErisX may be aiming to fill a gap in the market as interest for Ethereum rises. The same can be said of its targeted launch of the Bitcoin futures which happened on five months to the BTC halving event.
“We are proud to support ErisX as they leverage existing precedents and standards to meet market demands for a secure, transparent, compliant, and sophisticated Ether futures product,” Ethereum co-creator and founder of ConsenSys Joseph Lubin said in a statement on Monday.
The launch of Ethereum futures is a testament towards the growing trust from regulators in the United States on the second-largest blockchain network by market cap. Last October, CFTC chairman Heath Tarbert said that “it is likely that you would see a futures contract in the next six months to a year.” Fortunately, this has materialized and this opens the doors for other platforms to pursue similar launches.
Last week, Crypto-Economy reported that ErisX received a virtual currency operation license from the State of New York’s Department of Financial Services which will allow the company to expand its services to the stringent state.
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