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CME Group updating Ether-related index, source said “prep for ETH future”



CME Group is reported to take steps to change their Ether reference rate and the index tied to it on July 15th.

Joining Bitstamp and Kraken, Paxos’ exchange, itBit will provide data for the two financial instruments, while Crypto Facilities will remain to be the indexes’ operator.

An industry source that itBit’s addition is a signal of an upcoming Ethereum-tied futures.

“They have to improve the robustness of their index. I think this is prep for an Ether future,” the anonymous source said.

“Without reliable data, a cash-settled future can be easily manipulated or simply not represent the actual price of the underlying asset,” the person continued.

Moreover, the source added, “It’s the implicit limitation of CME’s cash settled futures — always need market data from spot exchanges.”

Speaking to The Block, CME Group said that they focus on their ETH index and reference rate, without clarifying if the move signals ETH futures in the near future.

Meanwhile, itBit doesn’t reply to any questions nor provides information regarding their becoming one of the data providers for CME Group.

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Ethereum Price Analysis: Ethereum Pulls Back Below $310 After Trading As High As $318



Ethereum has been trading above $300 in the last 2 days and it even went beyond $310 yesterday where the coin topped at $318. Later, a price correction happened, and the price slipped below $310 today. Ethereum has been a result-giving coin without much risks and speculations for the investors who do not want to have risky investments in their portfolios. Time and again, Ethereum has been proving its worth. The current market statistics of the coin are as follows:

ETH Chart:

Ethereum price Chart- July 10
ETH Chart by TradingView

ETH Current Market Statistics:

  • Ethereum is currently trading at $308.92 at 7:04 UTC as on 10th July.
  • The market cap of the coin is $33,058,429,872 with a 24h volume of $10,359,199,098.
  • The Circulating Supply of the coin is 106,837,043 ETH.
  • Ethereum currently fetches >9000% Return on Investment.

ETH to USD Price Comparison:

The above 24-hour chart shows that the intraday movement of the coin has been oscillating along the graph. The coin started with an upsurge yesterday. Around 2:33 UTC it went as high as $318.05 and then started descending gradually. It went as low as $302.97, almost near to its major support level of $300 at 20:18 UTC showing a fall of 4.7% on the same day. Today around 2:59 UTC the coin again gained the momentum and mounted as high as $314.84. It was just when Bitcoin had crossed $13,000 and laid an equal impact on Ethereum. But the coin could not hold itself there for a long time and currently trading below $310.

ETH Price Prediction and Conclusion:

If the coin continues to fall below the current trading price, it would face the major support at $300 and if it bounces back from the current price mark, it would face a major resistance at $320. Ethereum is a graceful investment avenue and has never failed to fetch proportionate gains for its investors. The coin is expected to trade around $500 by the end of the year.


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SEC Gives YouNow’s Ethereum Token ‘Props’ Reg A+ Approval



The U.S. Securities and Exchange Commission (SEC) has granted an ethereum-based token a Reg A+ qualification, the startup YouNow said Thursday.

Props is an ethereum-based blockchain token that integrates with streaming platforms like YouNow and XSplit to reward users and creators with tokens.

YouNow – which developed the Props blockchain – announced today that it will begin rewarding content creators with Props for in-app activities that “drive community engagement.” Users will also begin to receive tokens for engaging with the platform. YouNow will begin by distributing a total of 187 million tokens to users and creators, according to an SEC filing.

The video-streaming firm will incentive users to earn Props by offering VIP status and boosting their purchasing power of an in-app currency called Bars. Exclusive items and discounts will also be on offer to Props holders.

Reg A+ is a way to reward early investors, as well as galvanize users around a product by giving them a vested interest. At launch each token was valued at $0.1369, according to the filing. However, as the platform grows, demand for the tokens may rise, and token holders may earn a profit. This incentives Props holders to develop the network.

Additionally, tokens are transferable between different applications and wallets, though they cannot be exchanged for fiat currencies. At this point, there are four applications that have integrated with the token network.

TechCrunch reported that Props worked with the SEC for two years before receiving approval to ensure they weren’t misleading investors or inappropriately raising capital.

In fact, the company pre-sold $22 million worth of tokens to investors like Union Square Ventures, Comcast, and Venrock, among others. At the time, the company wrote, “Pending other uses, we intend to invest the proceeds in interest-bearing, investment-grade instruments, certificates of deposit, direct or guaranteed obligations of the U.S. government, cryptoassets or hold as cash,” in its SEC Edgar filing.

The SEC also recently granted the first Reg A+ qualification to a token sale for Blockstack‘s $28 million offering on CoinList. That token sale officially launched on Thursday despite some initial technical problems.


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Chicago Mercantile Exchange to change Ether-reference rate; ETH-Futures on the horizon?



If there is one true harbinger of the onrushing bulls in the cryptocurrency market, it’s regulated futures exchanges, particularly the last of the two initiators, the Chicago Mercantile Exchange [CME].

Hence, their possible leaning towards Ether Futures contract should be looked at with glee.

The CME group announced that the reference rate tied to the Ether-Dollar Reference Rate is set to change. The notice stated that the confirmation of the same will come about by July 15.

Three cryptocurrency exchanges have been included to prove pricing data for the Ether index in question, Bitstamp, Kraken, and itBit. The notice stated,

“Major cryptocurrency exchanges Bitstamp, Kraken, and itBit provide the pricing data to bring our dependable rate to the market.”

Although there was nothing apparent about the regulated futures exchange hinting at the possibility of an ETH-Futures contract, other sources emerged. According to The Block, the inclusion of itBit suggests that a derivative contract with the underlying asset being the second largest cryptocurrency could be a possibility.

The report quoted the source as saying,

“I think this is prep for an Ether future. They have to improve the robustness of their index.”

Volatility is a precursor in the cryptocurrency market, add onto that the lax-and betting-esque concept of a futures contract, could spell a ‘speculative disaster,’ for the cryptocurrency-futures market. Hence, the reliability of the data at the back of these contracts is pertinent to prevent price manipulation.

The source added that an “implicit limitation” of CME’s futures which are cash-settled is the need for “data from spot exchanges,” and credible ones at that.

Despite not giving anything away, the CME Group stated that they are ‘focused’ on their Ether Reference rate and Index, when questioned about ETH-Futures.

Futures contracts, especially those pegged on notable exchanges like CME and the late-Chicago Board of Options Exchange [CBOE], have come a long way since 2017. However, after their launch sparked the Bitcoin bull run, ending with Bitcoin close to $20,000, the aftermath has been brutal.

After an incredibly bearish 2018, spot markets as well as their futures’ counterpart turned for the better in 2019. The volume of XBT, the Bitcoin Futures contracts traded on the CME have been skyrocketing off-late. In the month of May, the average daily volume of XBT contracts on CME was over 13,600, a 250 percent growth since May 2018.

Source :ambcrypto

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