Ethereum Futures Are Now Live on UK Trading Platform
Crypto Facilities, a crypto startup based out of United Kingdom has recently announced the launch of Ethereum futures contracts which went live yesterday on Friday, May 11, 4 PM U.K time. In the official statement, the crypto startup stated that the arrival of Ethereum futures will propel the increase in liquidity in the crypto markets.
Crypto Facilities is a trading platform which is regulated by the Financial Conduct Authority (FCA). This makes it the first regulated platform to allow the trading of Ethereum Futures allowing market participants and investors to take long and short positions on the digital currency. The company says that this facility will help the investors to "broaden investment opportunities and manage risks more effectively.”
In a statement, Crypto Facilities chief executive Timo Schlaefer 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.”
Schlaefer also added that Ethereum over the period of time has matured just like Ethereum. He said: “Bitcoin has gone through a process of maturation as a financial asset with a futures market in the past year. And Ethereum is following a similar path this year.”
Although Crypto Facilities is a relatively smaller company and trading platform at the moment, it is seen making its way for larger participation in the ETH futures. The liquidity for the Ethereum futures will be provided by London-based market maker B2C2 and Chicago-based trading firm Akuna Capital.
Max Boonen, founder and CEO of B2C2 said that such a move by Crypto Facilities is a “natural step” for the Ethereum token. He said: "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.”
Toby Allen, Akuna’s head of digital assets also appreciated this decision by Crypto Facilities saying that the trading platform 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.”
On the other hand, Ethereum is on a significant correction. After hitting its one-month high of $820 last week on May 5, the second-largest cryptocurrency has been seen sliding sideways and has corrected by more than 20% since then. At the press time, Ethereum is trading 5% (in 24-hour) down at a price of $649.9 and with a market cap of $64.5 billion.