As of September 2017, buying Bitcoin to Dollar options will be available and CFTC approved in the US. This is an important step for Cryptocurrencies as this will allow more investors to have positions in this booming market.

What happened on July 6th

Current state, only some foreign exchanges like Deribit, BitMEX, Coinut were offering the possibility to trade Bitcoin options. But that’s about to change with the arrival of LedgerX.

LedgerX, a Derivatives Clearing Organization (DCO) has now been granted approval by the U.S. Commodity Futures Trading Commission (CFTC) to officially register a Swap Execution Facility (SEF) status, offering digital currency swaps and making it the First CFTC regulated Bitcoin Option exchange. The selected digital currency for now is Bitcoin, but it will probably not take long before Ethereum options are offered as well.

LedgerX’s parent company Ledger Holdings has attracted the attention and funding from major players. Google ventures was one of the early investors and recently, the company closed an $11 Million fund raising mainly from Miami International Holdings and Huiyin Blockchain Venture.

How is this important for the future price of Ethereum?

When forecasting the future value of an asset or an investment in general, assessing the existing and projected demand is key. This is one of the pillars of the Ethereum price forecast. So let’s take a moment here to assess quickly where we stand in terms of the current and future demand for Ethereum.

Existing demand

The existing demand speaks for itself so we won’t spend much time on this facet.

 

Ethereum transaction Demand

Future demand

Future demand is based on multiple factors so we will recap below some of the key events we think will impact the price of Ethereum:

  • Bitcoin Options available to the American Market as of September 2017, Ethereum very likely to be next
  • The South Korean actions to regulate the Cryptocurrency market and provide investors with a stable investing platform
  • Additional members joining the Ethereum Alliance therefore increasing the adoption and demand for Ethereum
  • The rising number of countries considering digitizing their currency and the potential Ethereum has to become a world currency

The top risk remains Security and Technical issues. The price performance during the end of June/beginning of July speaks volumes about how this ecosystem is vulnerable to the technical aspect. Bitcoin’s SegWit is causing serious volatility in the price of most if not all cryptocurrencies. Our price review of July the 23rd gives a clear picture of how technical events contributed to the current volatility.

By the way, make sure you take the time to review this article shared by InvestingHaven on what you need to know about the upcoming Bitcoin fork.

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