Crypto Facilities, a digital asset trading service based in the UK, announced today that it was launching Ethereum futures.
The company said in its announcement that the move marked the first time futures for the second-largest cryptocurrency would be traded on a regulated platform. Crypto Facilities is regulated by the UK’s financial watchdog, the Financial Conduct Authority (FCA).
“We are excited to be launching ETH futures,” the company’s chief executive officer, Timo Schlaefer, said in a statement, as quoted by industry website Coindesk. “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.”
Crypto Facilities will work with liquidity providers Akuna Capital and B2C2 to help back its ETH futures. Commenting on the development, Akuna's head of digital assets, Toby Allen, describe it as “another giant leap in the development of the crypto asset class”.
The founder of B2C2 Max Boonen echoed this sentiment, saying that the move was a “natural next step” for Ethereum. He added that the “continuing evolution and commoditization we're seeing in ethereum will further increase liquidity in the marketplace, enabling participants to exchange assets seamlessly and unlock value”.
Today’s launch means that Crypto Facilities’ portfolio now includes the three largest digital coins on the market, as the company already offers futures contracts for Bitcoin (BTC) and Ripple (XRP). In addition, the company also provides support to US CME Group commodities exchange, which launched its own Bitcoin futures product in December.
In today’s trading, the Ethereum price stood at $678.88, as of 14:41 BST. The digital coin has lost just over 11% of its value in the past 24 hours, amid a sharp slump affecting the entire cryptocurrency market. According to cryptocurrency tracker Coinmarketcap, Ethereum’s total market capitalisation currently stands at $67.4 billion.
For further information on how to buy and trade Ethereum, see our comprehensive Ethereum guide.