Institutional investors have been one of the groups that has had the most participation in the cryptocurrency market during the last months. In fact, a Triad Securities survey conducted last November revealed that 62% of these investors were considering buying Bitcoins. Also, cryptocurrency companies such as Coinbase have launched cryptocurrency storage services aimed especially at institutional investors.
Now, it was learned that the Blockchain startup ConsenSys announced its partnership with TrueDigital, the subsidiary of the financial technology company TrueEx, in order to develop a regulated market for Ether (ETH), the cryptocurrency of the Ethereum network. Specifically, this association seeks to create a reference price for trade among institutional investors.
According to the announcement, the two firms are seeking to design an 'objective' reference index for the ETH, as a first step in their goal of making more cryptocurrencies available to this type of investors. This news joins the announcement of TrueEx to launch a derivatives market for cryptocurrencies.
The official statement reveals that the first product offered is a Bitcoin contract that will be available on the TrueEx trading platform, however, it will be marketed under the TrueDigital brand. This contract is currently pending approval by the United States Commission on Futures and Commodities (CFTC).
As we could see at the end of last year, the CFTC already authorized the trading of Bitcoin futures to CME Group and CBOE, which were launched in December with total success. Although this new TrueEx project is still in its infancy, if approved, it can create a new Ether exchange mechanism with an official reference. In this regard, Sunil Hirani, founder of TrueDigital, said:
Institutional investors and business partners are ready for a regulated and liquid market to obtain exposure and coverage of these increasingly important digital currencies and products.