Ethereum futures achievable in 2020, better for course than bitcoin

If it is up to the Commodity Futures Trading Commission (CFTC), it is quite possible that in 2020 Ethereum futures will be offered on the market. If the altseason has not started by that time, the timing is good, because the prices are still relatively low.

Futures possible within a year

The reason why it is important that the price is so low is due to earlier launches of futures. Bitcoin futures were launched at the end of 2017 and promptly collapsed like a pudding.

During the first day of DC Fintech Week, Heath Tarbert, the chairman of the CFTC, said he absolutely believes that Ethereum futures can be launched in the coming 6 to 12 months.

“The volume it will trade at, no idea, that’s what the markets decide, but my guess is now that at least … we have a little more clarity about ether’s futures contracts.”

No official applications yet

He had to mention that no official applications have yet been submitted by companies wishing to launch ether futures contracts. There are rumors that Seed CX, ErisX, Tassat and LedgerX are interested in offering ether futures.

Tarbert says that if the CFTC approves a regulated exchange, investors can gain a lot of confidence in derivative investment products on ether. “There is no possibility of market manipulation.”

Better conditions than bitcoin

The course of Ethereum is still far from its peak. In January 2017, one ether was 1,187 euros. The currency is currently being traded for around 160 euros. Bitcoin reached the highest rate ever around the launch of bitcoin futures at the end of 2017 / beginning of 2018.

Two bitcoin futureproducts were actually launched at the same time, giving large investors two options to go short on the price. And that has earned them a lot of money, because the rate collapsed quickly.

Cactus saw that too:

Why is $ ETH futures bullish compared to $ BTC futures?

– Bitcoin futures launched at the ‘EXACT’ pinnacle of the bull market, a huge investment vehicle for those looking to short the market as it was clearly overpriced.

– This is confirmed by huge price plummets are launch.

– Cactus (@TheCryptoCactus) October 10, 2019

He says the bitcoin futures were launched at the perfect time, at the height of the bull market. Cactus says that bitcoin was clearly far too expensive. Going short was the only logical option.

ETH is in no way overpriced at this time and the markets are not overbought (you can measure that with an indicator called RSI). Ether is still worth 86.5% less than at its peak.

In addition, there is another bright spot for ether, because ETH2.0 is in development. This fundamental development of the protocol, coupled with the low current price, can actually lead to the opposite effect of the bitcoins futures from 2017. After all, the price could then only go down.