FILE PHOTO: Representation of the Ethereum virtual currency standing on the PC motherboard is seen in this illustration picture, February 3, 2018. REUTERS\/Dado Ruvic\/Illustration\/File Photo<\/p>\n
LONDON (Reuters) - Ethereum hit all-time highs on Wednesday, breaking above $1,500, as traders bought the cryptocurrency ahead of the launch of ethereum futures on the Chicago Mercantile Exchange next week<\/p>\n
Ethereum has seen year-to-date gains of around 120%, compared with bitcoins 30%, and hit a new high of $1,576.7 in early London trading on Wednesday.<\/p>\n
The listing of ethereum futures on a regulated exchange should serve to enhance the crypto market structure by allowing investors to gain exposure to the second most important cryptocurrency as a diversifier to bitcoin, or for simply hedging existing ethereum exposures, wrote JPMorgan strategists in a note to clients.<\/p>\n
It may be that this weeks listing of ethereum futures contracts will be followed by negative price dynamics by enabling some holders of physical ethereum to hedge their exposures, they added.<\/p>\n
But they continued: a successful launch of ethereum futures this month is likely to be followed by options on ethereum futures, perhaps as early as 2022, in a similar manner to the launch of options on bitcoin futures in the first quarter of 2020.<\/p>\n
Led by bitcoin, cryptocurrencies are gaining traction with more mainstream investors. The euphoria boosted the total market value of all cryptocurrencies above $1 trillion for the first time earlier in January.<\/p>\n
Graphic: Ethereum outguns other coins<\/p>\n
Reporting by Elizabeth Howcroft. Editing by Mark Potter<\/p>\n
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