According to Business Insider, Tom Lee, managing partner at Fundstrat Global Advisors, believes that futures trading the esters change the price situation on the market. Based on the precedent with the launch of a similar product for bitcoin, Lee predicts that broadcast ($291,595 -0,48%) might follow the same trajectory.
When futures bitcoin debuted in late 2017, the price of bitcoin ($7229,74 -0,37% ) rose to a new historic high of $19 700. After that, the leading cryptocurrency had gone into a steep dive, reaching below $6,000 in the following February.
Now the price of bitcoin 60 percent below the historical high in mid-December 2017.
If the analysis is based on the work of cryptocurrency futures – giving traders the opportunity to bet on the price movement of the “coin” without having to own it. Based on this logic, trade futures esters will give the bears an opportunity to open short positions on Ethereum.
According to Lee, the futures esters will provide a new field of activity for bears, reducing the pressure on Bicon. Lee said:
“From December this year, if somebody were a bear in relation to any aspect of cryptocurrencies, but not willing to own them, he could open short positions on bitcoin. Now they can open short positions on the air, and that means a short position on bitcoin futures will be disastrous”.
However, you should pay attention to the fact that futures on bitcoins offered by the Chicago Board options exchange is the options with a cash offset. This means that the transfer of the underlying asset is missing. In addition, the market is only responsible for a small part of the whole sphere of trading bitcoins, so perhaps futures on bitcoins had had any direct impact on the trajectory of bitcoin prices.
The price of ether is likely to be directly influenced by the strengthening/weakening of the dollar or increase/decrease in use of the token-ICO.
Meanwhile, there are indications that the futures Ethereum can be launched in the near future. Cboe SEC is waiting for the green light to officially launch the product. In June, the Commission on securities and exchange Commission clarified its views on the question whether the Ethereum security. The head of Cboe Chris Concannon said the decision paved the way for the start of futures trading on air.