Tommy Lee: ETH-Futures Launch Will Cause BTC Rate Increase
September 5, 2018
This June the CBOE has announced launching its own Ethereum-based futures. Prominent crypto expert Tommy Lee claimed, these derivatives may spoil the situation for ETH and bring profits to its major competitor, Bitcoin.
Back to the end of the last year, Bitcoin-futures were launched by CBOE and CME amid rapid cryptocurrency growth with BTC finally reaching its all-time high level. Soon after the derivatives were launched, the coin price fell down by about 70%. According to Lee, this had its reasons and the same thing can happen to Ethereum as well. The investor also added that ETH-futures may do good for BTC as they allow the Ethereum crypto bears reduce pressure on Bitcoin shorting:
“Since December of this year, if one was bearish on any aspect of crypto but did not want to own the underlying, they could short btc. They can now short eth, means the net short on btc in futures would fall”.
The sources in the know say that the CBOE will allocate new derivatives later this year at the Gemini market.