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TD Ameritrade-Backed ErisX Joins Ethereum Futures Market

TD Ameritrade-Backed ErisX Joins Ethereum Futures Market 101
Source: Adobe/rcfotostock

Major online trading platform TD Ameritrade-backed American crypto exchange ErisX starts offering regulated futures contracts with ethereum (ETH) as the underlying asset.

The new futures contract will be based on the ETH/USD spot rate and will be listed with monthly and quarterly expirations, the exchange said.

ErisX, which first launched futures contracts on bitcoin (BTC) back in December last year, received its license to offer derivatives products in the US from the Commodity Futures Trading Commission (CFTC) in July of 2019.

Since the launch of ETH futures yesterday, however, no trading volume has been recorded in the new product, while their more established bitcoin futures only saw a negligible number of contracts change hands on the platform on the same day, according to their website.

The lackluster trading activity on the platform appears to follow in the footsteps of other regulated US-based platforms that offer BTC futures, like Bakkt and CME, which lag far behind less regulated and more retail-focused competitors like OKEx and BitMEX in terms of trading volume and open interest.

However, futures contracts on ErisX are physically settled, meaning the holder of a futures contract will receive the underlying digital asset rather than just the equivalent amount in US dollars when a contract expires.

TD Ameritrade-Backed ErisX Joins Ethereum Futures Market 102
Source: Skew

Today’s product launch comes after ErisX, via its clearing and settlement arm Eris Clearing, on May 6 announced that it had received a Virtual Currency License – often referred to as the BitLicense – from the New York State Department of Financial Services. By securing the license, ErisX joins the ranks of other regulated exchanges like Coinbase, Bitstamp, and Gemini in being subject to the state’s strict regulatory oversight.

Besides TD Ameritrade, other investors in ErisX include Pantera Capital, Nasdaq Ventures, and Monex Group.

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