Cboe Ethereum Futures Are Positive For Bitcoin, Negative For ETH Says Tom Lee
In the last months the market discussed the possibility of introducing Ether futures trading. However, it seems that it would not be positive for Ethereum and its price. This is what Tom Lee believes. In the near future, the Cboe Global Markets could launch Ethereum futures contracts this year.
According to Tom Lee, Ether futures trading will change the price narrative of Ethereum markets. In order to do so, he compares Bitcoin’s trajectory when Bitcoin futures were launched in 2017.
After Bitcoin futures launched, the famous virtual currency reached an all time high of almost $20,000 dollars. Later in February, Bitcoin was traded close to $6,000 dollars.
Having Ether futures, investors will have the chance to short ETH and profit from it. That means that there will be new bears ready to start influencing Ethereum and its price.
About it, Lee commented:
“Since December of this year, if one was bearish on any aspect of crypto but did not want to own the underlying, they could short BTC. They can now short ETH, means the net short of BTC in futures would fall.”
At the moment, the Bitcoin futures offered by the CBOE are cash-settled. There is no transfer of real Bitcoins. At the moment, the CBOE is waiting for the SEC and its approval to launch the new product to the market.
At the moment of writing, Ethereum is being traded around $293 dollars, according to CoinMarketCap. It also has a market capitalization of almost $30 billion dollars.