- Ethereum futures trading volume has skyrocketed to a new peak in trading volume, hugely ascribed to landmark approval of spot ETH ETFs.
- ETH ETF approvals continue to draw institutional reception for Ether, with the LSE listing physically backed Bitcoin and Ethereum ETPs.
- Ethereum price is trading for $3,756, pulling back slightly into the key support level of $3,698.
Ethereum futures trading volume hits a record high following the approval of spot ETH ETFs, signaling increased institutional interest.
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) have 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.
Surge in Open Interest
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.
Conclusion
In conclusion, the approval of Ethereum spot ETFs has significantly impacted the trading volume of Ethereum futures, setting new records and drawing increased institutional interest. The listing of physically backed Bitcoin and Ethereum ETPs on the London Stock Exchange further underscores the growing acceptance and integration of cryptocurrencies in traditional financial markets. As Ethereum continues to trade around key support levels, the market remains dynamic with opportunities for both speculation and hedging. Investors should stay informed and exercise caution amidst the volatility.
