Several companies are planning to issue Ethereum-pegged futures. The regulators, however, are said to be reluctant to approve the initiative.
In particular, LedgerX CEO Paul Chow noted that they are ready to offer an Ethereum instrument, but it is all about the regulator's greenlight. He added that the chance for the positive determination is near fifty-fifty, as according to the media. In fact, LedgerX is generally in the same situation as ICE's Bakkt. The company is waiting until the Commodity Futures Trading Commission (CFTC) approves its Ethereuem derivative product.
Meanwhile, the regulators keep reportedly trying to understand Ethereum operational principles. In particular, the CFTC issued an information inquiry, asking the industry representatives to clarify some issues regarding the crypto.
Still, LedgerX is not the only company that targets Ethereum derivatives. Similar interest in this product was seen from ErisX, Seed CX and CBoE Global Markets. However, the latter doubts that the regulators will approve this instrument in the near future.
According to the regulators, the forthcoming Ethereum transition to Proof-of-Stake can completely change the perception of the cryptocurrency as a financial instrument. As a result, they need to thoroughly evaluate what they are dealing with.
The market participants believe that the futures will create new difficulties that yet to be thought through by developers.