Nearly eighteen months after the first cryptocurrency-related futures contracts went live, an anonymous official working the U.S Commodity Futures and Trading Commission (CFTC) is talking up the possibility of another such derivative.
This time though, it will be an Ethereum-based futures contract offered by a regulated derivatives exchange in the United States.
While sharing their thoughts about the possibility of an Ether Futures, the official told crypto news publication, Coindesk, that there could be one if a derivatives exchange applies to list such a product.
The official said,
“I think we can get comfortable with an ether derivative being under our jurisdiction. We don’t do bold pronouncements, what we do is we look at applications before us.
Moving further, the official explained the approval process for such a derivative saying,
“If they came to us with a particular derivative that met our requirements, I think that there’s a good chance that it would be [allowed to be] self-certified by us.”
Although the official did not reveal whether they had any such applications on the table, it is well documented that in December, they asked for public input on how the Ethereum network works. What remains uncertain is whether their findings are the reason why the regulator may be open to approving an Ethereum-based futures contract.
Meanwhile, for the crypto markets, an Ethereum-based futures contract will not only begin the introduction of more institutional investors but will also go a long way to increase public confidence in the new asset class. Further, it will make Ethereum the first altcoin after Bitcoin to boast such a product, with the latter already in the run for an exchange-traded fund (ETF).
The coming months will now tell whether any of the U.S’s derivatives exchange will take the mantle to apply for an Ethereum-based futures product given the official’s latest confirmation.