Anticipation of Ether ETFs Boosts Futures Open Interest to Historic $14 Billion
Crypto News– Ether (ETH) futures have hit an all-time high in popularity, driven by renewed optimism regarding the potential approval of spot ETH exchange-traded funds (ETFs) in the U.S. The notional open interest, representing the dollar value locked in active ether futures contracts, surged by 25% to a record $14.05 billion in the past 24 hours, according to data from Coinglass. This surpasses the previous peak of $13.2 billion set on March 15.
Renewed Market Influx
The surge in open interest is a clear indicator of fresh capital flowing into the ether market, predominantly on the bullish side. CoinDesk data shows that ETH, the second-largest cryptocurrency by market cap, has risen nearly 19% to $3,680. The simultaneous increase in open interest and price is typically viewed as a confirmation of an uptrend.
Increased ETF Approval Probability
On late Monday, Bloomberg’s ETF analysts boosted the probability of the U.S. Securities and Exchange Commission (SEC) approving spot ETH ETFs from 25% to 75%. CoinDesk also reported that the SEC had requested exchanges intending to list and trade potential spot ether ETFs to expedite their 19b-4 filings, indicating a possible fast-tracking of the approval process.
The crypto community on X is abuzz with speculation that the SEC might approve a spot ETH ETF, which could indicate a more favorable regulatory stance towards cryptocurrency. This sentiment shift has significantly contributed to the increased activity in ether futures and the overall bullish momentum in the market.
FAQs
What is causing the surge in Ether futures open interest?
The surge in Ether (ETH) futures open interest is primarily driven by renewed optimism regarding the potential approval of spot ETH exchange-traded funds (ETFs) in the U.S. This has led to increased speculation and investment in Ether futures.
How much has the open interest in Ether futures increased?
The notional open interest in Ether futures has climbed 25% to a record $14.05 billion in the past 24 hours, according to data from Coinglass. This marks a significant increase from the previous peak of $13.2 billion.
Why is the potential approval of spot ETH ETFs significant?
The approval of spot ETH ETFs would be significant as it would provide a regulated and accessible way for institutional and retail investors to gain exposure to Ether. This could lead to increased demand and investment in Ether, driving up its price and market activity.
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