First US Ether Futures Launched By ErisX

Exchange? and derivatives clearing organisation (DCO) ErisX announced the launch of its physically settled Ether Futures product yesterday: May 11, 2020. This would be the first Ether Futures product to hit the US market, and comes as a follow up to the ErisX’s physically settled Bitcoin? Futures product which was released back in December 2019.

ErisX’s Ether Futures product is available to both institutional and individual investors on the ErisX exchange? platform, offering the capability of block? trades (high volume? security transactions) as well as monthly or yearly contract options.

“We strongly believe that the Ethereum? blockchain? community and broader capital markets benefit from access to regulated products and we are pleased to be the first U.S. exchange? to offer these futures contracts… Our contract sizes are accessible for any investor while our technology stack and regulatory framework meet institutional expectations.” - Thomas Chippas, CEO of ErisX

ErisX is a ‘designated contract market’ which describes itself as “an innovative and unified platform for spot and regulated futures” and offers a range of products and services including spot and futures trading. ErisX’s spot products include… Bitcoin?, Bitcoin? Cash, Ethereum?, and Litecoin - vs USD trading). The company received its DCO status last July, after having applied back in 2017. According to the CFTC, a DCO is an ‘entity’ which enables the clearing of non-security based swaps.

Just last week (May 6, 2020) ErisX announced that it had been granted a BitLicense by the New York State Department of Financial Services (NYDFS). The first of which to be issued this year, and the 25th to be issued overall since 2015. The BitLicense enables ErisX (specifically Eris Clearing) to offer its range of digital assets products to New York residents.

Based in Chicago, the company was founded in 2010 with the aim of providing ‘cash-settled swap futures’, and has since evolved into an exchange? and clearing house through which customers can fund their accounts using USD, or one of a handful of digital assets options (BTC, ETH, LTC, BCH).

Its investors include the likes of: Bitmain, ConsenSys, Nasdaq, Fidelity Investments, Monex Group, and more...

"The Ethereum? network is the leading programmable blockchain? delivering real-world value to enterprises, governments, and individuals. As the digital fuel for the network, Ether is structured similarly to commodities traded in traditional capital markets today… We are proud to support ErisX as they leverage existing precedents and standards to meet market demands for a secure, transparent, compliant and sophisticated Ether futures product.” - Joseph Lubin, Founder of ConsenSys, an early investor in ErisX

According to reports published by research organisations, including one from Tokeninsight, the first quarter of 2020 saw $8.8 Trillion traded across (digital asset) Spot and Futures markets combined.

Unfortunately, millions of dollars were wiped out of the Bitcoin? futures market with the recent pre-halving? Bitcoin? market crash which we discussed yesterday. This was a surprising and unexpected event in many ways, as it contradicts trends exhibited prior to the second Bitcoin? halving? and even the recent Litecoin halving?.