Crypto Weekly: ETH futures live and crypto-product in pipeline at Visa

Mads Eberhardt

Cryptocurrency Analyst

Summary:  Tesla has bought Bitcoins for $1.5 billion. At around the same time, CME Group went live with their long-anticipated Ethereum futures - and Visa is planning to launch a crypto-product for banks later this year.


Tesla buys Bitcoins for $1.5 billion

A major announcement in the crypto space this week was when Tesla announced that they have bought Bitcoins for a total of $1.5 billion and furthermore plans to accept Bitcoins as payment for their products. Read our detailed analysis of this here.

Ethereum futures are live on CME Group

Along with Bitcoin, Ethereum traded at a new all-time-high of $1,820 today. The surge was partially driven by the Tesla news. However, the newly launched CME Ethereum futures arguably also contributed positively to the surge. The futures went live on Sunday after being announced by CME Group in December. It is the first regulated ETH future worldwide – and the second cryptocurrency future on the CME-platform next after Bitcoin, which was launched in December 2017. CME became the biggest Bitcoin future exchange in January this year, and with the launch of the ETH futures they will like become big in the ETH future space.

The launch of the futures was contributing to bringing the average fee on the network for processing one transaction to new all-time-high. The average fee hit $20 for the first time last week, making Ethereum only suitable for large transactions, leaving many minor users in the cold. Some Chinese Ethereum miners have figured out to mine and thereby process transactions on the network by using Nvidia's new laptop, thereby keeping the network more decentralized – but not precisely helping on the scalability headache as the network already hit its current transaction maximum. ETH 2.0 seems like the only plausible solution.

Visa is getting into the space

For years back, Visa did not have a focus on cryptocurrencies, but a lot has changed lately. Visa sealed a deal with one of the issuers of the second-biggest stablecoin, USDC (called Circle) in December to enable USDC transfers worldwide on Visa’s network. Last week Visa took it a step further and announced their plans to roll out a service for banks providing easy access to trading cryptocurrencies. The product launch is set for some time this year. It will most likely contribute to more banks launching cryptocurrency trading as the product from Visa removes significant entry barriers for the banks if they want to facilitate crypto trading to their clients. The plan is also to enable clients to spend their cryptocurrency holdings at the over 70 million Visa merchants globally. In the case a user spends crypto at a merchant, the cryptocurrency will be converted into the respective fiat currency right away to pay the merchant.

BTC against USD. Source: CoinMarketCap.
ETH against USD. Source: CoinMarketCap.
Disclaimer

Saxo Capital Markets (Australia) Limited prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at https://www.home.saxo/en-au/legal/.

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication.

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments.Saxo Capital Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Capital Markets or its affiliates.

Please read our disclaimers:
- Full Disclaimer (https://www.home.saxo/en-au/legal/disclaimer/saxo-disclaimer)
- Analysis Disclaimer (https://www.home.saxo/en-au/legal/analysis-disclaimer/saxo-analysis-disclaimer)
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)

Saxo Capital Markets (Australia) Limited
Suite 1, Level 14, 9 Castlereagh St
Sydney NSW 2000
Australia

Contact Saxo

Select region

Australia
Australia

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-au/about-us/awards

Saxo Capital Markets (Australia) Limited ABN 32 110 128 286 AFSL 280372 (‘Saxo’ or ‘Saxo Capital Markets’) is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms, Financial Services Guide and Product Disclosure Statement to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Saxo Capital Markets does not provide ‘personal’ financial product advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Capital Markets does not take into account an individual’s needs, objectives or financial situation.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website is not intended for residents of the United States and Japan.
Please click here to view our full disclaimer.