November 2018 started with a major announcement in the Cryptocurrency market: CME Group, an American financial market company operating the world’s largest options and futures exchange will be offering Bitcoin futures. CME Group launching Bitcoin futures will be subject to regulatory approval.
If approved, this will be a huge leap forward for the Cryptocurrency market as it will boost Bitcoin adoption in mainstream finance. We believe this might open the door for Ethereum’ mass adoption as well and for the following reasons:
- If Bitcoin futures are offered through CME Group, it will push for the regulation of the sector as we will have the CME Group in addition to LedgerX and possibly the Chicago Board options exchange offering Bitcoin futures. We have written about Bitcoin and Ethereum ETFs proposals in the past and one of the possibilities for them to be reconsidered for approval is a regulated futures market.
- The usual pattern we have seen with exchanges of offering Bitcoin first, then Ethereum and Litecoin next. If Bitcoin is offered first, the logical next move is to offer investors other alternatives and Ethereum is very likely to be next. We have actually been expecting this since we wrote back in July ago about LedgerX announcing their intent to offer Bitcoin futures.
- Ethereum Transactions are still trending higher. This is what we said investors need to keep an eye on as it is one of the most important data points to assess Ethereum’s value. If the demand is there, eventually Ethereum price will reflect that value. Right now, it is not reflected on Ether price which seems to be consolidating gains fron the first half of 2017.
For the reasons mentioned above, it is very likely the next Cryptocurrency to be considered is Ethereum, provided the demand remains and there are no security issues. With the Byzantium upgrade, it is very likely that it boosts the demand even more as the execution price and speed of transactions on Ethereum has been greatly enhanced.