Cryptocurrency Ethereum Hits Record High Ahead of CME Futures Launch

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.

Ethereum has seen year-to-date gains of around 120%, compared with bitcoin’s 30%, and hit a new high of $1,576.7 in early London trading on Wednesday.

“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.

Ethereum Gains

“It may be that this week’s 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.

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”.

Led by bitcoin, cryptocurrencies are gaining traction with more mainstream investors. The euphoria boosted all cryptocurrencies’ total market value above $1 trillion for the first time earlier in January.

Photo Credit: Reuters

(Reporting by Elizabeth Howcroft. Editing by Mark Potter)

Owner in New York’s Hell’s Kitchen Selling Out for Cryptocurrency

Bar owner Patrick Hughes is looking for “somebody young with fresh blood” to buy his bars using cryptocurrency.

Patrick Hughes has put his two side-by-side bars in New York’s Hell’s Kitchen, Hellcat Annie’s and Scruffy Duffy’s, up for sale – for 25 bitcoins or 800 Ethereum tokens, now worth up to $1.12 million.

He listed the bars in the western Manhattan neighborhood – which like other eating and drinking establishments have been hit hard by the COVID-19 pandemic – for sale in early January.

“This would be a good time for somebody young, fresh blood to get in here and go for it, like I did when I was 26 years old and opened my first place,” Hughes said in an interview. “Now I’m 56, and maybe it’s time for somebody else, because I am tired.”

A niche investment only few years ago, bitcoin has became the world’s most popular cryptocurrency.

Last year, it rose 304% in value, prompting investment banks to predict more future gains. JPMorgan Chase said it would reach $146,000, while Citigroup said bitcoin could hit $318,000.

Popular Cryptocurrency

Bitcoin is currently trading at nearly $36,000 apiece, putting the price for Hellcat Annie’s and Scruffy Duffy’s at nearly $900,000. Paying 800 tokens of the second biggest cryptocurrency, Ethereum, would make it nearly $1.12 million.

Hughes said he has had “a number of inquiries,” but not for a bitcoin deal, and said he would also consider selling the bars for dollars.

“Perhaps we will ceremoniously add one bitcoin to the deal, you know, just to kind of top it off,” Hughes said.

He closed both bars in March as the pandemic began battering New York. In November, Hughes reopened Hellcat Annie’s with an outdoor dining area that brings in enough business to support the establishment even with indoor dining shut down.

He uses Scruffy Duffy’s to store furniture removed from Hellcat Annie’s.

Before the pandemic, the bars had a combined staff of 50 people. Now it’s about five.

Hughes said COVID-19 had not hurt his personal finances badly. “I was fortunate enough to have saved my money over the years,” Hughes said. “And I’ve been able to weather the storm.”

He said he has one bitcoin. “It’s fun to watch it,” he said. “And we’ll see what happens in the future. But cryptocurrency is the future.”

(This story corrects spelling of Ethereum in paragraphs 1 and 6)

(Reporting by Aleksandra Michalska; Writing by Jonathan Oatis; Editing by Rosalba O’Brien)

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