U.K’s cryptocurrency trading platform Crypto Facilities has announced the launch of Ethereum futures which has gone live on its platform since 4 PM on Friday, May 11. Crypto Facilities being regulated by the Financial Conduct Authority (FCA) in the UK, makes the Ethereum futures to be first-of-its-kind regulated contracts to be traded in the crypto market.
The crypto-trading company said that the arrival of ETH futures will certainly “bring greater efficiency and liquidity to crypto markets.” The launch of ETH futures will allow players to long and short positions for the cryptocurrency thereby facilitating investors to broaden investment opportunities and manage risks more effectively.
While commenting on the launch of this new product, founder and CEO of Crypto Facilities, Timo Schlaefer said: “Ether is the second most liquid cryptocurrency after Bitcoin, trading in the billions of dollars daily, and we are excited to be launching ETH futures. 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.”
He further said that “Bitcoin has gone through a process of maturation as a financial asset with a futures market in the past year,” said Timo Schlaefer, founder and CEO of CryptoFacilities. “And Ethereum is following a similar path this year.”
There has been a lot of regulatory uncertainty surrounding around whether Ethereum should be considered as a security or not as top agencies like the SEC and the CFTC are debating over it. Responding to this matter Schlaefer said: “Whether Ethereum is a security is a matter for different jurisdictions to decide. Crypto Facilities is a derivatives platform and complies with the applicable regulation.”
Note that this is not the first exposure of Crypto Facilities with the digital currency futures market as the company is said to be working in partnership with Chicago Mercantile Exchange in order to establish the Bitcoin Reference Rate (BRR).
The liquidity for the Ethereum’s futures contracts will be provided by Chicago-based trading firm Akuna Capital and London-based market maker B2C2.
Toby Allen, Head of Digital Assets at Akuna Capital, said: “Akuna is excited to be a liquidity provider for the Crypto Facilities ETH futures product and is looking forward to seeing this much-needed product fill a gap in the market. The addition of a futures product enables crypto traders to take both long and short positions in ETH and is another giant leap in the development of the crypto asset class.”
Max Boonen, Founder of B2C2, said: “We welcome the launch of Ethereum futures by Crypto Facilities, a natural next step for the digital asset. The continuing evolution and commoditization we’re seeing in Ethereum will further increase liquidity in the marketplace, enabling participants to exchange assets seamlessly and unlock value. We look forward to providing liquidity for this new product.”
Many analysts say that the existence of such financial products like the crypto futures is quite positive for the long-term future of this asset class.