Investors who missed out on the Bitcoin surge to $7,834.72 should pay close attention to today’s Ethereum news update. ETH is on the verge of getting its own derivatives market, which is precisely what sent Bitcoin flying to the moon last month.
I know that memories are short in the crypto space, but surely we all remember the dramatic run that Bitcoin experienced in recent weeks.
Remember, Bitcoin had just broken through the $5,000 level when CME Group Inc (NASDAQ:CME) announced that it would add a Bitcoin futures contract. Investors took one look at the news and lost their minds.
BTC prices exploded, bringing the currency right up to the edge of $8,000.
Is this ringing any bells?
I’m asking because Ethereum is on the verge of something similar—it is about to get a derivatives market of its own. Or at least that’s what Bloomberg is reporting.
If the news is accurate, then a legendary derivatives architect truly is building an exchange for trading Ethereum futures, and this exchange will be governed by the U.S. Commodities Futures Trading Commission, making it incredibly legitimate.
Besides, the founder of the exchange is famous on Wall Street. His name is Sunil Hirani, and he made his fortune in high finance, designing credit default swaps for banks.
Intercontinental Exchange Inc (NYSE:ICE) was so impressed that it bought out his firm for $500.0 million.
No, you didn’t misread that number. It really was $500.0 million.
Hirani is abundantly qualified to run an exchange, in other words. Which means that Ethereum prices should be following Bitcoin to the moon, but, instead, they are chugging along like nothing transformative has happened.
Ignorance is the only explanation. Investors must be unaware that this event has taken place, or else they would be tripping over themselves to grab ETH at its current price.
The Ethereum to USD rate is currently around $332.15. However, I wouldn’t expect ETH prices to remain at this level for long.
Daily Ethereum Chart
This isn’t rocket science. The market loved the idea of Bitcoin securing a derivatives market because it could boost trading volumes and, ultimately, prices. Shouldn’t the same logic apply to Ethereum? I believe it does.
As a result, I am doubling down on my $1,000 Ethereum price forecast for 2018.