Crypto Facilities, a London-based cryptocurrency derivatives exchange, today announced the launch of futures for Ethereum (ETH). The new derivatives contract will start trading at 4 pm UK time today.
The first Ethereum futures to be offered by a regulated firm, the products will enable market participants to take a long or short position in the cryptocurrency, allowing them to broaden investment opportunities and manage risks more effectively. The new contract expands Crypto Facilities’ derivatives offering which currently includes Bitcoin and Ripple futures.
Timo Schlaefer, CEO of Crypto Facilities, said: “Ether is the second most liquid cryptocurrency after Bitcoin, trading in the billions of dollars daily, and we are excited to be launching ETH futures. The Ethereum network is the pre-eminent blockchain for smart contracts, and we believe this new trading instrument will attract more investors and bring greater liquidity to the marketplace.”
Crypto Facilities is a platform for professionals, offering individuals and institutions regulated, transparent and secure trading 24/7/365. The firm provides CME Group, the world’s largest derivatives exchange, with the CME CF Bitcoin Reference Rate that powers CME Group’s Bitcoin futures.
Toby Allen, Head of Digital Assets at Akuna Capital, said: “Akuna is excited to be a liquidity provider for the Crypto Facilities ETH futures product and is looking forward to seeing this much-needed product fill a gap in the market. The addition of a futures product enables crypto traders to take both long and short positions in ETH and is another giant leap in the development of the crypto asset class.”
Max Boonen, Founder of B2C2, said: “We welcome the launch of Ethereum futures by Crypto Facilities, a natural next step for the digital asset. The continuing evolution and commoditization we’re seeing in Ethereum will further increase liquidity in the marketplace, enabling participants to exchange assets seamlessly and unlock value. We look forward to providing liquidity for this new product.”
CME/Crypto Facilities Ether-Dollar Real-Time Index (Ether Real-Time Index)
CME Group and Crypto Facilities Ltd have also announced the launch of the CME CF Ether-Dollar Reference Rate (Ether Reference Rate), which will provide a daily benchmark price in U.S. dollars at 4 pm London time, and CME CF Ether-Dollar Real-Time Index (Ether Real-Time Index), which will allow users access to a real-time Ether price in U.S. dollars.
Both the Ether Reference Rate and Ether Real-Time Index will be calculated by Crypto Facilities and will be based on transactions and order book activity from two major cryptocurrency exchanges: Kraken and Bitstamp. The reference rates are available today on CME Group and Crypto Facilities websites and will be distributed on the CME Group Market Data Platform beginning June 4, 2018.
“The Ether Reference Rate and Real-Time Index are designed to meet the evolving needs of this marketplace. Providing price transparency and a credible price reference source is a key development for users of Ethereum.”
– Tim McCourt, Managing Director and Global Head of Equity Products and Alternative Investments at CME Group