Ethereum futures are coming soon; Here’s when you can buy them

Bitcoin, the major cryptocurrency, has been in the news lately, but it’s not the only one to rally in 2020. Ethereum (ETH), the second-largest cryptocurrency, has also performed extremely well.

In fact, Ethereum has done even better than bitcoin in 2020. While bitcoin’s value is up around 195% in 2020 at the time of this writing, Ethereum is worth five times more than it was at the start of the year. . A single Ethereum digital token is now worth around $620, and the total existing Ethereum supply is worth over $70 billion. This makes Ethereum the second largest cryptocurrency, as it is more than three times the size of token #3 (Ripple).

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Ethereum futures are officially coming soon

Until now, if you wanted to bet on the future price of cryptocurrencies with derivative securities, you were limited to bitcoin. And since CBOE (NYSEMKT: CBOE) disconnected its bitcoin futures products some time ago, there was only one place to buy bitcoin futures, on CME Group (NASDAQ: CME).

Well, that’s about to change.

While CME Group is still the only game in town for cryptocurrency futures (for now), the exchange just announced that it plans to list Ethereum futures in early 2021.

Here’s what we know so far. Ethereum futures are set to begin trading on February 8, subject to regulators’ approval. Each futures contract will represent 50 ETH, which means that each futures contract is tied to approximately $30,000 of the digital currency at its current value.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a high-end consulting service Motley Fool. We are heterogeneous! Challenging an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and wealthier.

About John A. Provost

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