Hope you’re ready! Ether has taken step towards institutional trading in the US, with ConsenSys announcing a partnership with TrueDigital to develop a benchmark price for the cryptocurrency.
The former is a New York based blockchain application startup, while the latter is a new affiliate of online interest rate swap marketplace trueEX.
Both companies plan to design a target reference index for the price of Ether (ETH), which is the second largest cryptocurrency by total value. This is an initial step towards the goal of making more crypto trading products available for institutional investors.
The two firms said that this development is a result of increasing interest in cryptocurrency related derivative products from institutional investors.
Sunil Hirani, founder of TrueDigital:
“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.”
And although things are at a very early stage, the creation of exchange products centered around Ethereum, along with an official price index reference could soon be a reality.
The trading of Bitcoin futures has already been authorized by the CFTC, with the Chicago Board Options Exchange launching in December last year, and the CME Group also offering trade opportunities for the original cryptocurrency.
Ether looks all set to becoming the second one.