Ethereum Futures Hit Record $1.26 Billion on CME Following Spot ETF Approvals

ByTim Russert

May 29, 2024

Ethereum futures trading on the Chicago Mercantile Exchange (CME) has surged to a new monthly high, reaching $1.26 billion in May. This spike in trading volume is largely attributed to the recent approval of spot Ethereum ETFs, which has significantly bolstered institutional interest in Ether.

Additionally, the London Stock Exchange’s listing of physically backed Bitcoin and Ethereum ETPs has further fueled this uptrend. Despite a slight pullback, Ethereum’s price remains robust, trading around $3,756 and holding strong at the key support level of $3,698.

This activity underscores Ethereum’s growing prominence on the radar of traders and investors following the landmark ETF approvals on May 23.

Ethereum Futures Trading Volume Hits New Heights

Following the landmark approval of eight Ethereum spot ETFs, trading volume for Ethereum futures on the Chicago Mercantile Exchange (CME) reached a new monthly record.

According to data from The Block’s dashboard, which references Coinglass data, trading volume surged to $1.26 billion in May, up from $615.75 million in April—a 104.62% increase.

This rise in trading volume reflects heightened interest and activity in Ethereum options contracts, largely driven by positive market sentiment following last week’s ETH ETF approvals.

Additionally, Coinglass data reveals a $720 million increase in Ethereum Futures open interest this week, indicating more liquidity and depth in the ETH options market. This suggests that traders can more easily enter and exit positions, contributing to growing speculation and hedging activity in the markets.

With this surge in both trading volume and open interest, traders are advised to remain cautious due to the increased market volatility. Meanwhile, reports confirm that the CME does not plan to offer Solana futures.

London Stock Exchange Lists Physically-Backed Bitcoin and Ethereum ETPs

In a notable advancement for cryptocurrency in the UK, the London Stock Exchange (LSE) has ensued trading physically-backed Bitcoin (BTC) and Ethereum (ETH) exchange-traded products (ETPs).

Managed by WisdomTree and 21Shares, these ETPs directly hold the actual cryptocurrencies to back their value, differing from ETFs which merely track the price of these assets.

The LSE currently oversees $755 million in crypto assets under management (AUM). By listing BTC and ETH ETPs, the exchange is broadening the accessibility and exposure of these digital assets to institutional investors.

This move not only increases the trading opportunities but also enhances the security and transparency for those looking to gain exposure to Bitcoin and Ethereum without directly owning the assets.

Cathie Wood Discusses Political Influence on Crypto ETF Approvals

Ark Invest CEO Cathie Wood has shed light on the unexpected approval of Ethereum ETF filings, suggesting that cryptocurrencies have become significant in U.S. elections.

Speaking at Consensus 2024, Wood revealed her initial skepticism about the approvals during an interview with Peter McCormack, host of the What Bitcoin Did podcast. She expressed that the general expectation was for a rejection.

As for market movements, Ethereum is currently trading at $3,758, having slightly retreated to the key support level of $3,698. Should this level not hold, the ETH price could present a new buying opportunity near the $3,600 mark, where a sell signal might be triggered.

The crypto market is volatile and it is difficult to predict the price of a digital currency. However, it becomes a lot easier with the help of AI crypto trading. The advanced systems of AI trading bot make the process easier.

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