Lee's declaration as the Cboe Global Markets gears up to launch Ethereum futures contracts in addition to its Bitcoin futures trading, which debuted in December 2017. If this is true, it could mean a lot for Ethereum.
According to Business Insider, Tom Lee, a managing partner at Fundstrat Global Advisors, believes that Ether futures trading will alter the price narrative of the market. Its bitcoin futures are also based on the Winklevoss twins' cryptocurrency exchange. The traders are not sure whether to classify this as a positive or a negative development considering the fact that it was the introduction of the BTC futures that marked the beginning of the fall in the BTC prices.
Futures contracts are a kind of derivatives that allow investors to place a bet on the price of the asset in the future.
Two protuberant digital currency investors and analysts predicted that the value of Bitcoin (BTC) would hit the $20k level since early this year. But after they came online, the price of bitcoin tanked and it's down more than 70% since hitting an all-time high at the end of 2017. The agency, run by J. Christopher "Cryptodad" Giancarlo, has garnered a reputation for being quite accommodating to the burgeoning cryptocurrency asset class, though it also vowed to ramp up its scrutiny of cryptocurrency derivatives products in response to criticism for its handling of bitcoin futures. Since Bitcoin futures debuted in mid-December of a year ago, prices tanked, with Bitcoin briefly touching $20,000 before tumbling to $7,200 as it stands today. The launch of Ether futures would be a remarkable step forward for the cryptocurrency community as it could lead to wider trading in the cryptocurrency ecosystem and potentially lead to an exchange-traded fund.More news: Saudi-led coalition admits "mistakes" in deadly Yemen airstrike
The CME established BTC futures trading on 17th December after the launching of BTC futures by the CBOE.
While ether futures can be bad for the second-largest cryptocurrency by market cap, they can benefit bitcoin, Lee noted.