- LedgerX is due to launch an Ethereum Futures trading option
- The CFTC will have a regulatory meeting with LedgerX on the 5th of October
- Other exchanges such as Cboe Global Markets are also working on Ether Futures
Trading in Ethereum is due to increase over the coming months and years as LedgerX, the cryptocurrency trading platform, has announced that they will soon begin support Ether on their platform.
This is good news both for investors as Ether has the second largest market capitalization of any Cryptocurrency and for Ether itself as it will see increased investment as a result of this.
According to a source at the company, the option for Tether is ready to go Live but that the company is choosing to wait for a regulatory meeting with the Commodities Futures and Trading Commission on the 5th of October before launch.
A force in crypto
It is no surprise that LedgerX is expanding its options for traders as they have long been aggressive in their pushing of crypto trading. The company was first founded in 2012 by Paul Chou, who is a former Goldman Sachs trader.
They have been very aggressive in bringing in mainstream investment into crypto, particularly institutional investments. Some of these include hedge funds, family businesses and so on.
Since it began dealing in Bitcoin in 2017, it has had some success but according to the source, the firm has been looking to achieve similar levels of success as Goldman Sachs and Morgan Stanley.
A futures option essentially allows an investor to place an order for an asset based on a price they anticipate It will be in the future.
Futures are an attractive option for investors and other exchanges such as Cboe Global Markets are trying to launch their own Ethers futures products. Just like LedgerX, they are waiting for regulatory approval before the products are offered to the general public.
Overall, futures seem like a very viable option for traders and one that might become more commonplace, particularly for institutional investors.
How stable is Ethereum?
While futures have been shown to be very viable, the value of Ether might not be as stable.
It has lost over 20 percent of its value in the last month alone, briefly losing its title as the second most capitalized cryptocurrency to XRP.