CME Ethereum Open Interest Hits 10% Of Future Market Milestone

CME Ethereum Open Interest Hits 10% Of Future Market Milestone

The CME’s Ethereum futures are now making a splash in the Etheruem Open Interest. The growth rate of the CME’s Ether futures has pushed it into the forefront of futures trading, leading to a new record high. For the first time, the total open interest on CME has surged above $1 billion amid growing popularity for ether futures trading, making it an important trading platform for Ethereum futures.

Open Interest On CME Hits New Record

While the price of Ethereum plummeted this past week, open interest in Ethereum futures had grown significantly. The increased interest in the digital asset had brought the total figure on the CME to $1 billion, giving it command of 10% of the total market share.

This is a new high for the CME but the figure still remains well below the total of over 20% that it records for the Bitcoin futures market. However, it is understandable as Ethereum futures have only been trading since February of 2021, while bitcoin futures have been trading for a much longer time.

Arcane Research also reported that this growth shows that institutional investors were moving more into the digital asset. As these ‘big money’ seek more exposure to Bitcoin, they are simultaneously seeking to get more exposure to Ethereum. This has been the driver behind the open interest growth in ETH futures on the CME.

Ethereum Moving With Bitcoin

Open interest in Ethereum futures has run alongside open interest on bitcoin futures. Bitcoin had seen increasing interest in this regard after the first bitcoin ETFs had been approved for trading in the fourth quarter of the year. Trading in the ETFs has since tapered off since the first ETF was released, but Ethereum had no doubt gained from this success.

Ethereum’s basis on CME has lined up with Bitcoin’s basis on the CME in these past couple of months too, which points to a very similar demand for both assets both on the long and short side of things.

Ethereum futures on the CME are still in what can be referred to as the infancy stage. Nonetheless, open interest has remained stable at 10%, showing that institutions remain eager to trade the digital asset.

This is all ahead of the first Ethereum ETF to launch. It remains to be seen when the Securities and Exchange Commission will green-light the first ETH ETF. All filings for Etherum ETFs have been rapidly withdrawn owing to the relatively young life of ETH futures.

As for ETH’s market price, the digital asset has once again recovered about $4,000 after a brutal week of dips had caused it to plunge towards $3,600 for the first time in over a month.

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