UK-Based Crypto Trading Platform Launches “First Regulated” Ethereum Futures

Published at: May 11, 2018

Crypto Facilities, a UK-based cryptocurrency trading platform, has launched the “first regulated” futures contracts for Ethereum (ETH), the world’s second largest digital currency by market capitalization, according to a press-release May 11.

Crypto Facilities, which is regulated by the Financial Conduct Authority (FCA) in the UK, started trading Ethereum derivatives contracts Friday at 4 p.m. UK time. The products will enable investors to take a long or short position on the cryptocurrency, which will reportedly allow them to “broaden investment opportunities and manage risks more effectively.”

With ETH futures, the London-based firm will expand its derivatives offering, which currently includes Bitcoin (BTC) and Ripple (XRP) futures. Liquidity for the Crypto Facilities ETH futures product will be provided by trading firms Akuna Capital and B2C2, which are based in Chicago and London respectively. Timo Schlaefer, CEO of Crypto Facilities, said:

“...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.”

Reports of regulatory uncertainty have surfaced regarding whether Ethereum qualifies as a security, a claim which Ethereum Foundation cofounder Joseph Lubin refutes. Regarding the recent controversy, Schlaefer said:

“Whether Ethereum is a security is a matter for different jurisdictions to decide. Crypto Facilities is a derivatives platform and complies with the applicable regulation.”

Schlaefer also stated that the presence of ETH futures will signal that it has matured in a fashion similar to that of Bitcoin:

“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.”

In December 2017, the Chicago Board Options Exchange (CBOE) started BTC futures trading. A week later the Chicago Mercantile Exchange (CME) introduced Bitcoin futures as well.

Recently, the Federal Reserve Bank of San Francisco issued an Economic Letter suggesting that the BTC price decline following its $20,000 peak was the result of the launch of Bitcoin futures trading by CBOE and CME. The letter states that the introduction of futures didn't cause the BTC price to collapse overnight due to the relatively low trading volume of BTC in the futures market.

Tags
Blockchain
Trading
Cryptocurrencies
United Kingdom
Related Posts
EToro to Issue Debit Cards Starting Q2 2020
Multi-asset investment platform and social network eToro is allegedly planning to launch a debit card in the second quarter of 2020. On Dec. 9, Business Insider reported that the United Kingdom-based digital asset trading platform’s 12 million users will be able to spend their earnings via a debit card, planned for launch in Q2 of next year. The service will reportedly launch in the UK firt. However, other details about this planned debit card launch remain unclear. EToro’s global head of PR & communications, Amy Butler, confirmed to Cointelegraph that the company is indeed working on a debit card launch, …
Blockchain / Dec. 9, 2019
London-Based Hedge Fund Raises $50M for New Crypto Investment Fund
Nickel Asset Management, a United Kingdom-based hedge fund manager, has raised $50 million for its newly launched digital assets arbitrage strategy fund. The fund breaks new ground because it is the first run by a UK Financial Conduct Authority (FCA)-regulated manager. According to a report from Finance Magnates on Sept. 9, the hedge fund has raised $50 million for its newly launched crypto investment fund, Nickel Arbitrage Fund, which aims to take advantage of arbitrage trading in digital assets. In arbitrage trading, traders buy an asset on one exchange and sell it on another at a higher price, thereby profiting …
Blockchain / Sept. 9, 2019
Taking the best of decentralization and centralization, a trading platform aims to find the perfect medium for investing
Investors continue to pour capital heavily into the cryptocurrency space. Despite the influx of new investments, those new to cryptocurrency trading still face major barriers to entry: from thousands of tokens and exchanges to confusing and expensive interfaces. With the crypto market functioning 24/7, it is also crucial for investors to understand and be aware of what is happening on the markets at all times. For these reasons, manually tracking a portfolio can be time-consuming and complex. Decentralized finance (DeFi) trading platforms arose to make life easier for traders by allowing users to manage their portfolios and track multiple exchanges …
Blockchain / Oct. 12, 2021
US Feds Raid Tech Hub for Unauthorized Crypto Trading: Report
United States federal agencies reportedly raided the office of a Michigan-based science and tech center last month during a crypto-related investigation, local news outlet Wood-TV reported Jan. 5. As Wood-TV reported, Chris Boden, the founder of The Geek Group, made a live public statement on YouTube Saturday night, which has evidently since been deleted. Boden reportedly claimed the office of his tech-oriented, non-profit organization had been raided by members of the U.S. Federal Bureau of Investigation (FBI) and the Department of Homeland Security (DHS) on Dec. 21, elaborating that computers and other equipment were taken from his the office. Wood-TV …
Blockchain / Jan. 6, 2019
Options Are the Answer for Dealing with ‘Bearish’ Crypto Market, Trading Platform Says
A new blockchain asset trading platform says it is determined to help investors navigate the “bearish” cryptocurrency market – and says options could enable traders to protect and grow their assets. Options are a form of financial derivative where buyers have a right to buy or sell a financial asset at an agreed-upon price for a set amount of time. However, as part of these contracts, they are not obligated to complete a transaction. According to JEX, the platform which is bringing options trading to the cryptocurrency world, this method helps investors to limit their losses while maximizing their potential …
Blockchain / Nov. 22, 2018