TD Ameritrade-backed ErisX Crypto Exchange Launches First Physically Settled Ether (ETH) Futures Contracts in the US

ErisX, the Chicago-based crypto derivatives exchange is officially the first to launch physically settled Ether (ETH) futures contracts within the U.S.

The TD Ameritrade-backed firm announced on May 11th that it has pioneered these contracts under the regulation of Commodity Futures Trading Commission (CFTC).

This move comes as a major boost to Ethereum's adoption within regulatory limits, including the vibrant global financial market. It's quite noteworthy that ErisX recently acquired a Bitlicense from the New York State Department of Financial Services (NYDFS).

With this kind of oversight, the firm is optimistic that it will attract more institutional investors into the crypto market via ETH. The announcement further echoed:

“Ethereum has genuine functionality and use cases with real people, firms and governments using the network, and it’s structure has many similarities with existing commodity markets.”

Physically Settled ETH Futures on ErisX

This launch marks Ether's debut as the second digital asset to be introduced within a regulated futures market after Bitcoin.

The current existing BTC futures market includes the Chicago Mercantile Exchange, Bakkt, and ErisX. The former markets having launched towards the end of 2018/19. However, it seems to be growing much slower than anticipated by market stakeholders.

ETH physical futures will hopefully encourage adoption in the market, as has been the progress with DApp development. By physical settlement, it simply means that the difference of the future with a prevailing market price will be sorted in the underlying asset form, ETH, as opposed to a fiat currency. The ErisX blog added that the contracts will be short-term expiring in a month or quarterly:

“Starting today individual and institutional investors can access physically delivered futures contracts based on ETH-USD with monthly and quarterly expirations.”

ETH futures come as no surprise to the crypto market portfolio; back in October 2019, the CFTC chairman predicted that they would launch within six months. This is after he had said that Ether is a commodity in his view.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Edwin Munyui
Edwin Munyui
Edwin is a FinTech enthusiast with a particular interest in blockchain technology and cryptocurrencies. He has worked as an author in the blockchain space since 2017 and enjoys creating content that both crypto veterans and newbies can understand. His simple writing style and financial market knowledge have made him a reputable fundamental and technical analyst with the ability to handle any topic around blockchain and crypto over the years.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,467FansLike
2,795FollowersFollow
4,191FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Ethereum Layer 2 Solution, SKALE Network, Launches Its Mainnet Phase One; Staking & Bounties Start in Early Q3

SKALE - an open-source scaling solution backed by Gemini exchange founders Winklevoss brothers for scaling the Ethereum network - has started to roll out...

Pundi X Integrates PayPal into Point-of-Sale Device, XPOS; Users Can Buy & Sell Crypto Seamlessly

Pundi X, a blockchain firm based in Singapore, has integrated its point-of-solution (PoS) device, XPOS, with PayPal, according to a medium post on June...

Crypto Mining GPU Manufacturer, NVidia Petitions Court to Toss Out $1 Billion Class Action

NVidia has petitioned the California court to dismiss the class action suit made by its investors. The lawsuit against the firm’s top brass alleges that...

Hacker Extort 116.4 Bitcoin from University of California San Francisco (UCSF)

The University of California San Francisco (UCSF) paid a ransom of $1.14 million in Bitcoin after a ransomware attack earlier this month, reported BBC...

Targeting Institutional Investors: SBI Holdings Is Buying a Minority Stake in B2C2 Exchange

A unit of Japanese financial conglomerate SBI Holdings, SBI Financial Services is buying a minority stake in London-based crypto market maker B2C2 for $30...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today