CME ether futures see record open interest as spot ETFs start trading in the U.S.
Volumes surge as ETFs open door for both directional and non-directional traders.
Activity in Chicago Mercantile Exchange’s (CME) ether (ETH) futures reached new heights on Tuesday as the debut of spot ETH exchange-traded funds (ETFs) in the U.S. galvanized investor interest in the second-largest cryptocurrency.
The so-called open interest or the number of active bets in standard ether futures rose to a record of 7,661 contracts, equaling 383,650 ETH and $1.4 billion in notional terms, the exchange said in an email to CoinDesk. The previous peak of 7,550 contracts was set one month ago. The standard contract is sized at 50 ETH.
Speaking of trading volumes, the derivatives giant witnessed 14,736 contracts change hands on Tuesday, which is three times higher than the average daily volume of 5,010 contracts seen throughout July. Tuesday was also one of the top 10 volume days for ether futures.
Giovanni Vicioso, global head of cryptocurrency products at CME Group, attributed the surge in activity to the onset of spot ether ETF trading in the U.S.
“The approval and subsequent trading of spot ether ETFs in the U.S. has reinvigorated the market, driving significant growth in volume across our Ether suite and leading to record open interest for our flagship Ether futures,” Vicioso said in the email.
“As more and more traders seek exposure to cryptocurrencies, our suite of regulated, reliable and deeply liquid bitcoin and ether futures products continue to provide transparent tools for managing risk and capitalizing on market opportunities,” Vicioso added.
Spot ETFs hold ether, meaning investors in the fund have exposure to the actual cryptocurrency rather than derivatives tied to the digital asset. The ETFs are widely expected to pull billions of dollars worth of investor money in the coming months.
These funds can be used to take both directional and non-directional arbitrage bets, such as carry trades, as observed in the bitcoin market. Besides, authorized participants tasked with creating and redeeming ETF shares are said to use regulated products like CME futures to hedge their exposure.
NEWS A patent awarded to the Bank of America outlines how enterprise-level institutions may be able to store cryptocurrencies owned by their customers. The filing, awarded by the U.S. Patent and Trademark Office Tuesday, contends that large companies – specifically enterprise-level institutions – may want to store cryptocurrencies for customers should they see wider adoption. There…
news Cryptocurrency exchange Binance has announced that it’s launching a project that will develop cryptocurrencies and digital assets pegged to fiat currencies around the world. Dubbed Venus, the “localized” stablecoin initiative will see the firm utilize its existing infrastructure, such as its public blockchain, Binance Chain, and international payment system, “to empower developed and developing countries…
Continued accumulation of bitcoin by investors is causing market liquidity to drop and helping drive prices higher.Feb 3, 2021 at 12:19 p.m. UTCUpdated Feb 3, 2021 at 12:21 p.m. UTCBitcoin Holders Have Now Stashed Away 15% of Circulating SupplyLong-term investors continue to hoard bitcoin, sucking up market supply and helping the cryptocurrency maintain its broader…
The idea of a decentralized internet isn’t new. Projects like Hyphanet and Tor were early attempts to create decentralized networks. More recently, blockchain-based initiatives such as IPFS (InterPlanetary File System) and Filecoin have emerged. However, these efforts have faced significant challenges. The primary hurdle has been the need for widespread physical infrastructure - servers, routers
On April 18, Avi Eisenberg was convicted of fraud for his October 2022 exploit of Mango Markets. The case has grabbed particular attention because Eisenberg quickly acknowledged executing the $110 million attack, and characterized his tactics not as a crime, but as a “highly profitable trading strategy,” leaning on his interpretation of the dictum that
WASHINGTON – Within a 36-hour period, the first bitcoin futures exchange-traded fund (ETF) began trading, the underlying cryptocurrency hit a new all-time high and federal lawmakers dusted off their 2019-era concerns about the Facebook-linked stablecoin project Diem.I spent most of DC Fintech Week in the U.S. capital to reconnect with people I haven’t seen in…
Sep 3, 2020 at 13:00 UTCUpdated Sep 3, 2020 at 13:30 UTCBitcoin hourly price chart. (TradingView)Bitcoin (BTC) tumbled about $403 in an hour early Thursday, deepening a two-day sell-off that pushed the largest cryptocurrency to its lowest point in a month. The price was down 4.9% on the day to $10,838 as of 13:09 coordinated…
news Food delivery is about to get a little sweeter for the users of the bitcoin rewards platform Lolli. The startup announced Wednesday that is has partnered with delivery service Postmates, making the popular app the latest partner for Lolli’s rewards program. One of the most popular food services, Postmates mobile app saw 2,094,920 downloads in the…
Nov 23, 2020 at 8:00 p.m. UTC(Lazy_Bear/iStock via Getty Images Plus)A Bitcoin Shortage? PayPal and Cash App Buying More Than 100% of New SupplyWhen demand from these two sources alone exceeds the entire supply of newly minted bitcoins, expect serious supply pressure to follow.For more episodes and free early access before our regular 3 p.m. Eastern time…