CME Ethereum futures will be launched soon, and Grayscale will also rush. What should retail investors do?
Editor's Note: This article comes fromBabbitt Information (ID: bitcoin8btc)Editor's Note: This article comes from
Babbitt Information (ID: bitcoin8btc)
Babbitt Information (ID: bitcoin8btc)
, Author: Overnight's Porridge, published with permission.
Ethereum's influence in this bull market of encrypted assets is expanding, and it has recently hit an all-time high of $1,720, which was jointly promoted by retail and institutional investors.
On February 8, CME Group (CME Group), the world's largest financial derivatives exchange, will launch Ethereum futures as scheduled. This event has attracted the attention of the encryption market.
It is reported that the new ETH futures contract will be settled in cash and provide institutional investors with digital asset exposure at a ratio of 50:1. According to the official announcement, the ETH derivatives will be open for trading from Sunday to Friday, 6:00 pm - 5:00 pm Eastern Time.
In view of the importance of this event, Grayscale, the world's leading digital asset investment institution, is preparing for the peak of volatility. It recently reopened the Ethereum trust to qualified investors and completed a transaction of more than 76 million For ETH transactions in US dollars, as of now, Grayscale holds more than 3 million ETH, worth about 4.6 billion US dollars.
Conjectures on CME ETH Futures’ Impact on the Crypto Market
Regarding the impact of CME's upcoming ETH futures on the encryption market, there are currently two camps in the market, bullish and bearish.
Bears believe that in the last crypto asset cycle, after CME launched BTC futures in February 2018, the market entered a bear market. Therefore, after CME launched ETH futures, there is a high probability that whales will also use CME futures to short ETH and trade in spot The market crashes, triggering a new bear market.
For example, netizen juthica said:
“The upcoming launch of CME ETH futures reminds me of regulators approving bitcoin futures to end the 2017 bitcoin bull run.”
This statement seems to have some truth, but not everyone agrees with it.
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For example, Bankless co-founder Ryan Sean Adams retorted:
"There are many ways for whales to short ETH today, and this situation has existed for many years. The launch of CME futures is just a new tool that gives US institutions a more reliable place to short, but I think its The benefits of existence outweigh the disadvantages for ETH. The advantage is that ETH has become an asset that more institutions can buy.
He also added:
What do you think?
