Institutional investors about to get a chance to trade Ether

Posted: 12 March 2018 4:30 pm

trueEX creating path for investment in Ether derivatives

America’s first regulated cryptocurrency exchange is developing a benchmark price for Ethereum derivatives.

The first big move toward mainstream Wall Street investments into Ethereum has been made by the only swap exchange so far regulated by the Commodity Futures Trading Commission. The trueEX marketplace is developing a benchmark Ether price for future Ethereum investment products with the help of blockchain developer ConsenSys.

“Institutional investors and commercial partners are ready for a regulated and liquid marketplace to gain exposure to and hedge these increasingly important digital currencies and commodities, but the marketplace is sorely lacking the necessary foundation, infrastructure and platforms that institutional investors have come to expect in other important markets,” said trueDigital Holdings founder Sunil Hirani.

Swaps are a kind of derivative exchange between two financial instruments, most commonly interest rates, commodities and foreign exchange currencies.

TrueEX is also developing trueDigital-branded non-deliverable forward contracts for bitcoin, though the Chicago Board Options Exchange won the approval race for bitcoin futures last December.

While bitcoin and Ethereum have amassed $156 billion and $68 billion of market cap, respectively – per CoinMarketCap, the possibility of greater access to institutional investors offers an opportunity many times larger. In comparison, the gold market currently sits at $8 trillion and Apple had a year-end market cap of $869 billion.

US regulators recognized this substantial opportunity during a Senate hearing that was aired to the public last month and have been working to create the proper legal framework for the growing cryptocurrency industry ever since. Recently the SEC has provided guidance for the unregulated cryptocurrency exchanges that proliferate the Internet and for the booming initial coin offering (ICO) practice.

The intense price volatility of cryptocurrencies and the threat of hacking at unregulated exchanges have been cited as deterrents for institutional investment in the space.

Just as the CBOE’s futures did for bitcoin, trueEX aims to have its Ether benchmark legitimize institutional investment into Ethereum.

Disclosure: At the time of writing, the author holds XRP, CND, ANT and DRGN, and actively trades BTC and ETH.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Latest cryptocurrency news

Picture: Shutterstock

Ask an Expert

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site