How will Futures Affect Ethereum? The Community Try to Guess
How will Futures Affect Ethereum? The Community Try to Guess

With bitcoin futures being just nine months old, one major marketplace now appears to move to the next step by launching futures contracts based on ether. The news has sparked a discussion within the community, with many people wondering what this could mean for the price of ether.

Futures contracts, also referred to as futures, are standardized exchange-traded financial derivatives that provide an agreement between a buyer and a seller to buy or sell an asset at a predetermined price on a predefined date.

Each futures contract represents a specific amount of the underlying asset and futures can be either cash settled or come with physical delivery. In the case of ether futures, the underlying asset would be the digital currency ether.

Now, some argue that a futures market undeniably leads to greater adoption, more legitimacy in the eyes of mainstream investors, and the possibility of exchange traded funds (ETFs) being listed sometime in the future. Others, however, urge caution, noting that the price of bitcoin has been going down more or less continuously since bitcoin futures were launched late last year. Bitcoin’s fall from almost USD 20,000 is directly tied to the launch of a futures market, according to research from the San Francisco Federal Reserve published in May.

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