The digital asset trading service startup Crypto Facilities, based in the UK, announced on Friday that it’s launching Ethereum futures contracts. The company claims this will be the first time that futures for Ether are going to be traded on a completely regulated platform. Ether is the cryptocurrency that powers the Ethereum blockchain.
According to the company, Investors will have the opportunity to take short or long positions, enabling them to “broaden investment opportunities and manage risks more effectively.”
Timo Schlaefer, Chief Executive of Crypto Facilities, when discussing the new offering noted that with trading volume of over billions of dollars per day, the second-most liquid cryptocurrency after Bitcoin is Ether.
“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 will partner with liquidity provider companies, B2C2 and Akuna Capital, to back its contracts. Toby Allen, Akuna’s digital assets chief, ascertained that his company was “looking forward to seeing this much-needed product fill a gap in the market.”
He added that creating Ethereum futures contract is “another giant leap in the development of the crypto asset class.”
“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”.
Crypto Facilities Precedence With Other Crypto Futures
Crypto facilities have been involved in other crypto futures products before now. They already offer both XRP and bitcoin futures contracts. The company provides CME CF Bitcoin Reference Rate (BRR) to CME Group, used by the Chicago-based exchange in providing its bitcoin futures contracts.
There was an argument very recently by some Federal Reserve researchers that one of the major reasons behind the decline of the crypto market earlier this year was due to the launch of Bitcoin futures because the bears leveraged on this opportunity to take short positions. Other analysts, however, argued that the creation of Bitcoin futures will prove bullish for the crypto market, in the long-term.
About Crypto Facilities Ltd
CryptoFacilities is a world-leading financial services firm and cryptocurrency trading platform for professionals. They offer individuals and institutions FCA-regulated risk management, transparent, and secure trading solutions 24/7/365 for digital assets such as Bitcoin and XRP.
They also operate as a broker for exchange-traded futures and options, calculating and offering the CME CF BRR and Real-Time Index used by the CME Group’s Bitcoin Futures. It was established in 2015, with its headquarters in London. Their activities are authorized and regulated by the UK’s Financial Conduct Authority.