The CME’s Ethereum derivatives have dropped dramatically since the release of the spot Ethereum ETFs. This is a reflection of the reduced institutional interest.
The trading volumes of Ethereum derivatives at the CME Exchange experienced a major decline in August. Ethereum futures volume fell by 28.7%, to $14.8 Billion, and options volume decreased 37.0%, to $567 M, the lowest since December 2023.
Data from CCData shows The decline in spot Ethereum ETFs comes only months after their introduction, which took place at the end of May, signals “lower-than-expected institutional interest in the asset.”
CME derivatives volume fell by 1.16 percent to $129 Billion. Bitcoin’s (BTCThe drop in Ethereum ( ) futures was 3.74%, and the trading of Bitcoin options fell 13.4%. Ethereum futures saw a 3.74% increase to $104 billion, while Bitcoin options trading fell by 13.4% to $2.42 billion.ETH( trading volume contrasts with Bitcoin’s robust performance, which has surged more than 45% in this year as opposed to Ethereum’s modest growth of only 20%.
Crypto.news reported Noelle Acheson, a crypto analyst at the time, attributed the decline in institutional interest for Ethereum ETFs due to investors’ preference for Bitcoin. Acheson has compared today’s ETF scene to the gold market where ETFs control over $100 billion of assets while silver ETFs only hold under $20 billion. Analysts predict that Ethereum ETFs will continue to grow in the future, due to institutional investors increasing their interest.
Part of the reason for Ethereum’s weaker performance is due to increased competition by competitors such as Solana.SOLTRON (TRX(which are also receiving attention. The seasonal effects of August could have also contributed to a decrease in trading activity. This trend is expected to continue into September.
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Source: crypto.news