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

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As a researcher with extensive experience in the cryptocurrency market, I’m thrilled to see Ethereum (ETH) gaining significant attention following the approval of multiple ETFs on May 23rd. The surge in trading volume and open interest for Ethereum futures on the Chicago Mercantile Exchange (CME) is a clear indication of increased investor confidence and market optimism. With over $1.26 billion in trading volume in May, compared to $615.75 million in April, it’s evident that there’s growing interest in Ethereum options contracts.

As an analyst, I’m keeping a close eye on Ethereum after the historic approval of several Ethereum spot ETFs on May 23rd.

Ethereum Futures Set New Monthly Record At $1.26 Billion

As an analyst, I’ve observed a significant surge in the trading volume of Ethereum futures on the Chicago Mercantile Exchange (CME) following the approval of eight Ethereum spot ETFs. According to data from The Block’s dashboard, which is based on Coinglass figures, over $1.26 billion worth of Ethereum futures contracts were traded in May, marking a notable increase compared to the $615.75 million transacted in April.

As a crypto investor, I’ve noticed some impressive numbers regarding Ethereum Futures trading on the CME lately. In May, the trading volume for options hit an all-time high of $1.26 billion, surpassing the previous record of $615.75 million set in April. This significant increase demonstrates a growing interest and demand in Ethereum derivatives within the traditional financial market.

— Kyledoops (@kyledoops) May 29, 2024

The 104.62% rise indicates a surge in enthusiasm and transaction volume for Ethereum options contracts, presumably fueled by optimistic market conditions in the aftermath of last Thursday’s ETH ETF approvals.

This week, there has been a significant increase in trading activity for Ethereum, as evidenced by Coinglass data. Additionally, open interest for Ethereum Futures contracts has risen by approximately $720 million.

The total number of open long and short positions for Ethereum (ETH) indicates the level of open interest in the options market. This signifies a greater degree of liquidity and complexity within the ETH options market, enabling traders to easily buy or sell positions. With the escalating trading activity and increasing open interest, there is growing anticipation and risk management among traders in the Ethereum markets. It’s important for traders to be vigilant due to the heightened market volatility.

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

London Stock Exchange Lists Physically Backed Bitcoin, Ethereum ETPs

Currently, major financial institutions are showing increasing support for cryptocurrencies, with a particular focus on Bitcoin (BTC) and Ethereum (ETH). An important announcement was made in the UK financial sector as the London Stock Exchange (LSE) introduced physically-backed Bitcoin and Ethereum exchange-traded products (ETPs), now available for trading.

Expert: The London School of Economics (LSE) manages a substantial crypto portfolio worth approximately $755 million. This significant amount can now be accessed by institutional investors through the recently listed Bitcoin and Ethereum Exchange-Traded Products (ETPs), managed by WisdomTree and 21Shares respectively. These listings expand the reach of these assets, enabling easier buying and selling for investors.

As a researcher studying investment products, I’d describe physically-backed Exchange-Traded Products (ETPs) as financial instruments that hold real cryptocurrencies like Bitcoin and Ethereum in trust, providing a tangible backing for their value. In contrast, Exchange-Traded Funds (ETFs) merely mirror the price of these assets without directly owning them. By listing Bitcoin and Ethereum on the London Stock Exchange (LSE), investors can gain exposure to these cryptocurrencies with added security and transparency, as they don’t have to physically hold the coins themselves.

Elsewhere, Cathie Wood, CEO of Ark Invest, has concurred with the market’s perspective that ETH ETF applications were granted approval due to crypto’s growing significance in US elections. However, she had previously believed that these filings would be denied based on all indicators. During her interview at Consensus 2024 with Peter McCormack of the “What Bitcoin Did” podcast, Wood expressed this viewpoint publicly.

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

Currently, Ethereum’s price is at $3,756 during my writing, but it’s showing signs of retreating towards the crucial support of around $3,698. Should this support weaken, Ethereum could present another purchasing chance close to the $3,600 mark, while a sell signal remains on standby for potential activation.

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

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2024-05-29 21:46