According to a recent report, Chicago Mercantile Exchange (CME) which is one of the largest platforms for trading regulated Bitcoin futures in the US has made it known that it will be making some alterations to its pricing data source for its Ether (ETH)- bases indices on the Exchange.
The Exchange which recently went beyond the record all-time high daily trading volume of over $1.7 billion has included New-York based itBit Exchange in its list of data providers which currently consist of Bitstamp and Kraken.
Kraken is located in the United States while Bitstamp is based in Luxembourg.
Ether [ETH] Futures Likely
According to a recent report, there is a huge possibility that CME is considering the launch of Ether [ETH] Futures.
Due to its widespread reach, the regulators at Commodities Futures Trading Commission (CFTC) has revealed that they are comfortable with the possibility of an Ethereum futures and it is even likely to be put into place very soon.
A Senior Official at the commission revealed that:
“A derivatives exchange comes to us and says ‘we want to launch this particular product.’ … If they came to us with a particular derivative that met our requirements, I think that there’s a good chance that it would be self-certified by us.”
Reportedly, a source close to the industry confirmed the preparations. The source said:
“I think this is prep for an Ether future, they have to improve the robustness of their index.”
Ether is based on formidable blockchain technology and with the CME CF Ether-Dollar rates, it will have a standardised reference rate. Its spot price index will also bring confidence to any trading strategy.
The cryptocurrency exchanges Bitstamp, Kraken, and itBit will provide the pricing data to bring the exchange’s dependable rate to the market.
The role of CFTC which is based in the United States includes the supervision of cases related to the futures market. Its concern for crypto-based future markets has been massive volatility and possible market manipulation that is prevalent in the crypto-industry.
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