Ethereum (ETH) is not seen anymore as the “Bitcoin killer”, but rather as an alternative risk opportunity. Because of its ubiquity and liquidity, the ETH digital asset is often picked up by mainstream investors.
The UK-based CryptoFacilities is launching its ETH futures on this May 11th, after successfully launching Bitcoin and Ripple futures in 2015 and 2016.
https://twitter.com/CryptoFLtd/status/994882522965270528
The British startup is relatively small, but also seen as making way for a wider adoption of ETH futures. So far, only ETH derivatives are widely available, most notably on NASDAQ Nordic, by XBT Provider. However, neither the CME or the CBOE have shown readiness to follow up on their launch of Bitcoin futures.
“Bitcoin has gone through a process of maturation as a financial asset with a futures market in the past year," said Timo Schlaefer, founder and CEO of CryptoFacilities. "And Ethereum is following a similar path this year.”
The ETH market price remains volatile, sinking again as the market tides turned. ETH lost nearly 9% to $694.82, sinking 11% net this past week. The price of ETH remains under pressure after the completion of numerous ICOs, some of which sell on the open market, potentially depressing the price.
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Predictions for ETH prices are uncertain, due to the very different qualities of ETH as a utility coin. It is possible that locking up ETH for staking may increase the price. At the same time, the usage of ETH for gas fees make it a utility coin, and some investors expect the price to remain depressed around $400.
For 2018, the expected bull run of ETH is seen reaching $1,500 again, a feat which ETH nearly completed last year. However, it is hard to predict if this would become the new stable range for ETH, or if it would be a one-off peak, as it happened in December and January.
ETH prices remain volatile, as the coin is often not seen as a safe haven, instead suffering the fate of altcoins, as funds move back to BTC. Hence, the creation of ETH futures may not untie the price exposure from Bitcoin’s risk, just reverse it. ETH has seen deep corrections against BTC prices, as well as loss of confidence in the coin’s future.
This article appeared first on Cryptovest
