Ethereum has seen a substantial surge in value after the U.S. Securities and Exchange Commission (SEC) gave its approval for a group of spot ether exchange-traded funds (ETFs). This week, the price of ether reached a peak of $3,980 per coin, which is approximately 18.4% lower than its all-time high. Amidst these fluctuating prices, the ethereum futures markets have reached a record high in terms of open interest.
Ether derivatives have also experienced a significant increase in demand, alongside the dynamic activity on ethereum spot markets. The open interest for ether futures has reached unprecedented levels, while the aggregated open interest in ethereum options has remained near its all-time high. As of May 28, 2024, the total open interest for ethereum futures stands at around $17.05 billion.
A high level of open interest in ethereum futures and options contracts generally indicates a rise in trading activity and interest from both institutional and retail investors. This increased open interest for ether can lead to greater price volatility as traders actively manage their positions, potentially signaling an upcoming significant price movement. Currently, the aggregated open interest for ether options contracts is $10.99 billion.
In terms of futures, Binance leads with $6.14 billion out of the $17.05 billion in open interest. Bybit follows with $3.48 billion, and Okx holds $2.18 billion. In the options market, Deribit dominates with $9.77 billion out of the $10.99 billion aggregate. Okx, Binance, and Delta Exchange follow Deribit, respectively.
On the spot markets, ETH has risen by 33.3% over the past two weeks, with a 16.9% gain according to 30-day statistics. Although ETH came close to its all-time high recently, it is currently 20.9% below the peak of $4,878 per unit set on November 10, 2021. The increase in ethereum’s value, following the approval of spot ether ETFs, has not only impacted the spot markets but has also significantly boosted the derivatives segment.
What are your thoughts on the action in ethereum’s derivatives market? Feel free to share your opinions and insights in the comments section below.
