Ethereum is now firmly established as the cryptocurrency with the second biggest market cap after Bitcoin, and more good news could be on the way for the coin if recent reports regarding CTFC approval of Ethereum futures are to be believed.
According to a report from Coindesk, the United States Commodity Futures Trading Commission could be all set to approve it, provided Ethereum passes the commission’s stringent tests. Needless to say, it would be a significant development for the cryptocurrency if it eventually comes to pass.
ETH is up by 8% at the time of writing.
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The main target of many cryptocurrencies is often to get mainstream legitimacy, and it is no different when it comes to Ethereum. This is a particularly significant development since it opens up the field for large institutional investors to get into Ethereum in a big way. If the approval is actually granted, then there is every chance of Ethereum carving out a much bigger niche for itself in the crypto market at large.
For many years, institutional investors have not been comfortable with investing in cryptocurrencies, since crypto exchanges do not provide the sort of security that they look for. Plenty of cryptocurrency exchanges have been attacked, and investors have lost millions over the years. For institutions to invest large sums of money, secure channels need to be available, and the approval of Ethereum futures could be just the instrument to provide this.
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Strong Possibility of Approval
According to an official at the CTFC, there is a definite possibility of Ethereum futures being approved. The anonymous sources stated that once the application comes through to the CTFC, the body reviews the application and, if the requirements are met, permission is granted.
The source went on to state that there is a very high possibility of Ethereum being granted this permission since the CTFC is comfortable with that particular coin. It is important to note that Bitcoin futures have been in circulation since 2017 and with the crypto market rising again, it could be just the right time to introduce Ethereum futures.