Both Chicago-based major derivatives exchanges, the CBOE and the CME Group are rumored to be preparing to launch Ethereum and Litecoin futures. The plan could have been developed well in advance, sources say. With the launch of Bitcoin futures being a test bed for the deployment of more cryptocurrency derivatives, the expansion of the asset class to the futures markets may be only starting.
According to the sources that shared this information with Finance Magnates the launch of both contracts is imminent. In theory, the successful launch of the Bitcoin contract should add confidence in the market and in the broad asset class.
Trading volumes on the Bitcoin futures contract on the first day after the official launch was a little over 4,000 BTC, which is a minuscule amount when compared to the physical Bitcoin market. The contract has not been as anticipated as the launch from the CME Group next week, but the smooth operations (save for 2 circuit breaker triggers) should, in theory, open the doors for exchanges to deploy more derivatives on cryptocurrencies.
Price action across crypto exchanges seems to be anticipating something of the likes with Ethereum prices rising over 30 percent during the past 24 hours, while Litecoin ballooned almost 80 percent as of writing.
With the rumors already encircling the market, punters have been quick to pile up on their holdings of Bitcoin alternatives. The dominance of BTC across the broad cryptocurrency markets declined in recent days to a low of 59 percent, when compared to 67 percent of the total crypto market cap last Friday.
Finance Magnates has reached out for a comment to representatives of both exchanges, but at the time of publication, no official response has been received.