CME Launches Ethereum Index Spurring Speculation on Upcoming Futures

CME Launches Ethereum Index Spurring Speculation on Upcoming Futures

On Monday, CME, one of the leading futures brokers in the world, launched two indexes for tracking the price of Ethereum. The structure of the new indexes is very similar to the Bitcoin futures that CME already offers and investors are now wondering if there are Ethereum futures in the planning.

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Less than a week after the British cryptocurrency exchange Crypto Facilities launched the world’s first regulated Ethereum futures, CME announces two indexes based on the same digital asset. In fact, CME’s new index was made possible through a collaboration between CME and Crypto Facilities and it’s by far the biggest development for Ethereum trading in the past year.

The two indexes are a CME CF Ether-Dollar Reference Rate which prints at 5 PM in Europe (4 pm in London and 11 am on the East Coast) and the CME CF Ether-Dollar Real-Time Index. As mentioned, CME is the exchange that provides the product, however, the prices come from Crypto Facilities that collects and calculates the prices based on data from Kraken and Bitstamp.

In December of last year, CME launched the first official Bitcoin futures a little more than a year after Bitcoin indexes were launched and investors have now started speculating on whether we can expect Ethereum futures in the near future.

Are Ethereum Futures a Good or a Bad Thing?

When CME’s Bitcoin futures were launched in December 2017, everyone assumed the price of Bitcoin would surge. However, only a short while after the futures were launched, the price of BTC started plummeting and now it’s selling for less than half of its value when the futures were first launched.

If the price drop was accidental and based on the extreme surge that BTC had experienced or if the futures played a part is hard to tell, but worries about ETH futures having the same effect on the market are spreading.

That being said, CME has not mentioned anything about Ethereum futures and when the indexes were launched yesterday, CME’s managing director Tim McCourt said that “The focus right now is on the index itself.”