Definition ∞ ETH futures are standardized derivative contracts that obligate parties to buy or sell a specified quantity of Ethereum ETH at a predetermined price on a future date. These financial instruments allow investors to speculate on the future price of ETH without owning the underlying asset directly. They are traded on regulated exchanges and can be used for both hedging existing ETH positions and taking directional market views.
Context ∞ The market for ETH futures is a significant component of the broader digital asset derivatives landscape, providing liquidity and price discovery for Ethereum. Regulatory discussions often focus on the oversight and settlement mechanisms of these contracts, particularly concerning investor protection and market manipulation. The introduction of ETH futures on mainstream financial platforms represents increasing institutional acceptance and integration of digital assets into traditional finance.