Ethereum Futures On CME Sets New Monthly Record In May After ETH Spot ETF Approvals

3 months ago 46

Ethereum remains on the watchlist of traders and investors following the landmark approval of multiple Ethereum spot exchange-traded funds (ETFs) on May 23.

Ethereum Futures Set New Monthly Record At $1.26 Billion

Following the landmark approval of eight Ethereum spot ETFs, Ethereum futures on the Chicago Mercantile Exchange (CME) has soared to a new monthly high on trading volume metrics. Data according to The Block’s dashboard, which cited Coinglass data, records upwards of $1.26 billion in May, relative to the $615.75 million in April.

The trading volume of options on #Ethereum Futures on the CME reached $1.26 billion in May, surpassing April's $615.75 million and setting a new monthly record, according to The Block's Data Dashboard. pic.twitter.com/Mp82EVWkke

— Kyledoops (@kyledoops) May 29, 2024

The 104.62% increase points to increased interest and activity in trading Ethereum options contracts, ideally driven by positive market sentiment following the approval of ETH ETFs on Thursday last week.

Alongside the surge in trading volume, Coinglass data shows a $720 million surge in Ethereum Futures open interest this week.

Open Interest points to the sum of all open long and short positions for the concerned asset. It suggests increased liquidity and depth in the ETH options market, meaning traders can easily enter and exit positions. With the surge in trading volume and open interest, ETH markets are recording growing speculation and hedging activity. Traders should exercise caution amidst the heightened volatility.

London Stock Exchange Lists Physically Backed Bitcoin, Ethereum ETPs

Meanwhile, institutional players continue to embrace crypto and ETH specifically. In a significant development in the UK financial market, the London Stock Exchange (LSE) posted physically-backed Bitcoin (BTC) and Ethereum exchange-traded products (ETPs) for trading.

The LSE boasts $755 million in crypto assets under management (AUM). With these made available to institutional financial backers, the listing of BTC and ETH ETPs, facilitated by WisdomTree and 21Shares, increases exposure for the assets. It makes them available for buying and selling.

Physically backed ETPs are investment products holding actual cryptocurrencies, Bitcoin and Ethereum in this case, to back their value. This is different from what ETFs do, tracking the price of these assets. Listing BTC and ETH on the LSE therefore provides more security and transparency for investors looking for exposure to these cryptocurrencies without actually holding them themselves.

Elsewhere, Ark Invest CEO Cathie Wood has echoed what markets had assumed, that ETH ETF filings were approved because crypto is now a factor in US elections. She acknowledged that all signs pointed to a rejection. Citing Wood on stage at Consensus 2024 during an interview with What Bitcoin Did podcast host Peter McCormack, she said:

The read was it was not going to be approved. It was absolutely not going to be approved.

At the time of writing, the Ethereum price is trading for $3,756, pulling back slightly into the key support level of $3,698. If this level fails to hold as support, the ETH price could provide another buying opportunity near the $3,600 threshold, with a sell signal that is pending activation.