Tomorrow, ethereum futures are going to go, live on the cme now this particular event has many people worried since back in 2017, when bitcoin futures launched over on the cme, the price of bitcoin actually tanked from its previous all-time high of like twenty thousand dollars, and it Went down by seventy percent in less than six weeks.
In fact, the launch of the bitcoin cme futures coincided with the end of the bull run and the beginning of a long, savage and brutal bear market leading many people to speculate that this could be the beginning of the next bear market.
It's. All over for crypto in this video i'm, going to break down the situation for you and give you my opinion on what is going to happen. My name's lark and every day i make videos to help you make money.
Investing so if that is what you want to do, then make sure you subscribe to the channel hit the bell smash up the like button make sure to catch all of my videos by the way, if you want to earn a safe and simple passive income with Your cryptocurrencies, then you need to get yourself a block.
Fi interest account. You can earn five point: two five percent on your ethereum six percent on your bitcoin six point: five percent on your litecoin and eight point: six percent on dollar coins like usd and as a special bonus.
If you sign up using the link down below in the description, then you can get up to a 250 dollar bitcoin bonus, which is totally awesome, so check that out. Okay, let's, get into this topic so tomorrow the cme will launch their ethereum futures.
Now in case you don't know. The cme is the biggest futures market in the world. You know so they're kind of a big deal kind of a big deal so launch. You know it's. It's, going to provide a wide range of market participants with a new and easy way to get exposure to the price of ethereum.
You know if it's going up going down. They can now bet on that over on the cme futures markets. Now launch of these futures comes just two days after ethereum hit a new all-time high at 1 752. In fact, since the launch of the ethereum c m e futures were announced, ethereum's been on an absolute terrace, but it's been raging higher it's up around 190 percent, since those futures were announced, and of Course that coincides with an overall bull trend in the market, but you need to understand one thing about the cme futures products that are being launched.
These are paper products paper derivatives. There is zero ethereum backing these paper contracts and they're all settled in cash. They're bought in cash. They're sold in cash. There's, no ethereum involved at all.
It's. Just speculating on the price, meaning that in terms of actual market impact, the cme could do a hundred billion dollars and see you know, ethereum futures volume and not a single real piece of ethereum would be bought or sold.
It's. Just a derivative trading platform right, so it's, not like something like grayscale that they actually go out. They buy actual real ethereum, put it in their vaults to back up their shares of their trust.
There's, nothing like galaxy digital's. Ethereum funds that are launching so, which are gonna, have direct access to real ethereum. This is just baseless paper. Now there are a few different opinions on what will happen when these futures do launch, though there are those who think that this will be a terrible event like it was for bitcoin back in 2017.
There are those who think really not much is going to happen since it's just paper contracts anyway, these guys are just speculating on the wider uh moves going on in the market. They're, not actually making the market, and there are those who think that this will actually be a decent thing in terms of price appreciation, because we & # 39, ll, see more institutions getting exposure to the asset taking interest in the asset.
I'm kind of more in that camp personally, but the uh you know, since the guys over in the not much is going to happen. Cam isn't that interesting. I think we're going to look at instead is the the for and against it's going to be good or it's going to be bad points of view.
First, let's, discuss the idea. This is going to be terrible and crash. The market sending us into a new devastating bear market. So, as mentioned at the start of the video, the launch of bitcoin cme futures in summer 2017 came days before the start of the brutal bear market of 2018.
Of course, in the 2019 all that fun stuff - understandably, some people have some some ptsd issues around uh, crypto, cme futures launches it's understandable, but that has led some people to kind of um.
You know think that the ethereum cme futures are going to play out in the exact same way the bitcoin cme futures did. But i disagree with this scenario. You see 2017 was totally different time. December 2017 was crazy.
That was already at the blow off parabolic top things have been going totally insane at the time the cmbq futures launched the current market structure, not similar at all. I'm sure you've, seen the market moving up a lot, but nothing like 2017.
. We're now in the early stages of a bull market, not the late stages of a bull market like in 2017. This market has got a long way to go, could be you know, seven, eight, nine months a couple years, even many people are conflating causation and correlation with the launch of the cme futures for bitcoin.
I don't believe the launch of the bitcoin futures around the cme is what caused the blow off top to happen. They didn't end the bull market right, they happened at the same time. The bull market was ending anyway, so it's, not going to cause a new bear america to take place.
We see the ethereum futures launching now. One thing i could see happening, though, is they um? You know, buy the rumors, sell the news kind of thing, because there are so many people who are expecting that the cme futures launch is going to pump ethereum like crazy and when it kind of doesn't happen.
There will be a lot of disappointment. You know the people go well, it didn't, do an instant moon pump. You know the ethereum didn't double in price overnight, so this must be a big scam. I'll. Show the short the whole ponzi to zero.
Now right, the worst, i can see a short term correction of days or weeks playing out. That may not happen, but that's like the worst case scenario that i see out of the cme futures launches, but i truly do believe um that the cme futures is not going to lead to another multi-year bear market.
It's. Just not it's. We're, totally different market right now, because late 2017 that was already the blow off top guys by the time the cme futures launched for bitcoin. The market was already done. That thing was cooked man.
The current market structure it's, not really that similar to december 2017, we're in the early stages of this bull market, guys we're, not in the you know the end of this bull market, but anyway, i Think it's also worth noting that um bitcoin uh just more than doubled versus its previous all-time high from 2017.
. Now this is really important, because you have to understand that the entire time that the price of bitcoin doubled and then some the cme has continued trading, bitcoin, futures, crazy, stuff right. So the trading of those futures that did not stop bitcoin from hitting 42 000 or will they stop bitcoin from hitting a hundred thousand perma bears, will get wrecked.
Remember they're, just betting on the price of the market. The buyers of the actual underlying assets are the ones that are really driving the market right. People like paul tudor jones, the clever ones they go along because they see what's actually going on with the markets.
The perma bears. They just bet against everything, get wrecked all the time. Also grayscale aka institutional investors. They've, just bought 160 million dollars worth of ethereum in the last few days.
That's more than a hundred thousand ether, incredible incredible demand from buyers here. Do you really think that all those institutions are out there buying up all that ethereum, because they honestly believe that the market is about to tank and enter a multi-year bear market? They're, seeing the big picture right.
They're. Looking at the big picture, these guys are buying ethereum because they know ethereum is going to be worth five digits in the not so distant future, the cme markets. They do not make the market they're, just speculating on the price going up or down.
They do not dictate the price, so don't get fall into that trap. These are paper contracts settled in cash. There's. No ethereum backing them; they just allow wall street, to you, know, bet one way or the other and in an uptrending market they will either bet on the price going up or be a bunch of you know, broke ass wrecked bears betting on the price going down.
The smart ones bet on the price going up because they like making money and the traders playing around in the cme of course, are also missing a crucial component of the ethereum equation. They will not be getting any staking rewards, but i think, will drive institutions more into actually getting the real stuff remember.
Buying and holding real ethereum is essentially owning what could be become one of the most valuable internet bonds, paying a solid annual reward in the native asset. In the end, i think that the cme futures will be a net positive at the time that they're launching for the market, even if more serious investors, you know they're, still going to want more direct access to ethereum those Guys are going to go out and buy it straight off a coinbase.
They're, going to go and buy galaxy digital ethereum funds they're, going to buy gray scale shares right. They want more direct exposure to the actual underlying asset. That being said, the cme futures.
It gives institutions another option, another avenue to get involved to get that price exposure at the very least to what's going on in the market, and i fully expect that these futures will be popular with institutions.
In the same way, the bitcoin futures were right: it's, got a gateway drug for these guys to get involved to get that price exposure to the asset, but eventually they want a better hit. They go on to get the real stuff later on and when they figure out what ethereum actually is they're going to want to get the real deal anyway? That was us my two way for the day.
What do you think? Do you think that the assyria ethereum cme futures are going to be a positive or a negative for the price of ethereum in the short run, and in the long run? Let me know down below love to hear your thoughts on the coming ethereum cme futures thanks.
So much for watching today's, video and peace out till next time: [, Music, ], you