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U.S Exchange Eris X Targets Institutions with Ether Based Future Contracts

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futures trading
futures trading

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American-based exchange Eris X is launching an Ether-based Futures Contract. The company confirmed the news in an announcement published today. Amongst other things, the move will see Eris X become the first exchange in the United States to issue Ether-based future contracts. ErisX is a crypto company that runs a platform for spot and futures contracts. The New York-based firm integrates digital currency products with unique tech features that would help to deliver dependable, extensive capital markets workflows.

In the announcement, Eris X declared that the move would help it to promote price transparency with its unique and innovative platform. The firm also confirmed that it would run the Ether futures exchange trades alongside the Eris X spot market.

This isn’t the first time that the firm will be dabbling in the crypto-denominated financial instruments market. Last year, the crypto company launched a regulated Bitcoin futures market. The crypto trading platform announced at the time that its future market had gotten regulatory clearance from the Commodity Futures Trading Commission. At the same time, the company designed the physically-delivered Bitcoin futures contracts to trade simultaneously alongside a spot market that supported three other digital currencies – Ether, Bitcoin Cash, and Litecoin.

ErisX also obtained a license from the Financial Crimes Enforcement Network in the US to launch the product. Per the new release, Eris X is looking to develop an expansive, transparent, and regulated financial market. The exchange believes this “ideal market” would create more hedging opportunities, while also promoting price discovery and easy risk transference. The firm believes that this new framework will benefit the entire Ethereum network.

Eris X Wants a Transparent Market Model 

Eris X runs a strict system where the company’s matching engine allows for an equal access market. This way, it can effectively prevent market manipulation from criminal elements.

By releasing Ether-based futures contracts, Eris X claims that it believes in the Ethereum network’s policy of accessibility to all individuals and institutions, in equal terms. The company also argues that its new feature is a win for all as it offers users access to the best prices.

The company is stepping into uncharted waters, however. While there are several physically-delivered contracts denominated in Bitcoin, no firm has tested Ether futures just yet. There was a lot of talk concerning a possible foray into Ether this year as far as financial products go, and ErisX is taking the plunge first. 

However, it’s also worth noting that success here could signal to institutional investors and other investment firms that cryptocurrencies are stable investment vehicles. Soon enough, we could begin to have futures contracts and more with digital assets acting as their bases.

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