Wow this is going to open up the casino to a lot of major players. I fear the hobbyist investor is going to get roasted. Anything that can be traded on such a scale will undoubtedly be manipulated.
Conversely, the efficient markets hypothesis implies that in time, the prices of eTulips will converge on the values of the underlying security. But you're right in that it will likely be preceded by an influx of new greater fools.