The Chicago Mercantile Exchange (CME) has started trading Ethereum futures on its platform to give institutional investors exposure to the world’s second largest cryptocurrency by market capitalization

According to information from Skew, a total of 77 Ethereum futures contracts have already been traded since the start. According to the CME specifications, the contracts apply to 50 ETH each (currently around 81650 USD or 6 USD) 3 million together)

“With the Ethereum network, which enabled dozens of new“ crypto unicorns ”last year, ETH is ready to become a clear starting point for investors interested in the more comprehensive innovation of crypto and its meanwhile numerous use cases“Lior Messika, founder and managing partner of the EU risk fund Eden Block, told Decrypt

He added that in many ways, Ethereum is currently at a much earlier stage to reach its full potential, while the “narrative of Bitcoin” has been around for over 10 years

CME Ether Futures start trading 77 contracts have been crossed so far. ETH / BTC have declined somewhat BildTwittercom / YaFwtV4Jir

Futures are a type of derivative contract and are used to sell an asset at a certain price at a certain point in the future.Unlike options, futures contracts must be fulfilled on the expiration date. In this way, it is a financial game of chance that one of the both parties “wins” depending on the difference between the strike price of the contract and the actual market price of the asset at that time

While CME started trading Bitcoin futures and options a little over three years ago, marking the top of the Bitcoin bull run, it took some time before another coin was added to the list, but Ethereum is a completely different tier The blockchain platform serves as the basis for countless DeFi projects (decentralized finance)

Kadan Stadelmann, CTO of blockchain solutions provider Komodo, said that the introduction of ETH futures by CME is “the next step” in introducing cryptocurrencies into the institutional financial sector that the crypto industry has been waiting for

“Bitcoin and Ethereum are obviously in a different stratosphere considering the current crypto rollout, but I believe this is just the beginning of the expansion of futures trading between major institutions as we become more supported assets and more players see in the mix, ”Stadelmann told Decrypt

He stated that when CME launched Bitcoin futures in 2017, the market was very different from what it is today.At that time, smart contracts technology was still in its infancy and not so many understood what blockchain really is today Ethereum a “global financial powerhouse” with the ETH at the center

“Everything is running in the Ethereum network at the moment, from decentralized exchanges to lending logs to NFT marketplaces. The CME Group and other large institutions are clearly optimistic that cryptocurrencies and decentralized technologies will only gain momentum in the coming years “, added Stadelmann

As Decrypt reported last Friday, the digital asset manager Grayscale increased its Ethereum holdings by more than 38 million US dollars within one day.But the institutions only want price promotions or are they also lured into the DeFi room?

Ethereum price

World news – FI – CME launches Ethereum futures, ETH price remains stable – decipher