Speaking with Business Insider reporters, Lee, who has become well-known, if not near-infamous for his seemingly undying bullish sentiment on Bitcoin, noted that Ether futures will allow speculators to weigh down on the price of ETH.
After launching bitcoin futures in 2017, the Chicago Board Options Exchange (CBOE) has announced, it will be pushing out Ether futures soon.
To help jump-start that process, Cboe is reportedly basing the upcoming ether futures on the underlying market of the cryptocurrency platform Gemini, founded and run by Tyler and Cameron Winklevoss. A future is an agreement to purchase and sell an asset - crypto or otherwise - on a specific data and at a specific price.
While many agreed with this hope, Tom Lee, the head of research at Fundstrat Global Advisors, expects this news to benefit the price of Bitcoin (BTC) more than the price of Ethereum (ETH). "They can now short eth, means the net short on btc in futures would fall".
The Commodities Futures Trading Commission (CFTC) is supposed to affirm the futures and options exchange.
The Securities and Exchange Commission declared Ethereum as not a security earlier in June. CBOE President Chris Concannon said at the time, "This announcement clears a key stumbling block for Ether futures, the case for which we've been considering since we launched the first Bitcoin futures in December 2017". Since Bitcoin futures debuted in mid-December of previous year, prices tanked, with Bitcoin briefly touching $20,000 before tumbling to $7,200 as it stands today. The Chicago Mercantile Exchange (CME) released a report last month in which it showed that the average daily volume of BTC futures had climbed 93% in the second quarter compared to the first quarter.
Cboe, the largest options and futures exchange in the US, is said to be waiting on additional clarity from the CFTC before launching. However Terry Duffy the CEO of CME, stated he won't be getting an Ethereum futures live for CME.