According to CoinDesk, trading volumes for ether futures on the Chicago Mercantile Exchange (CME) saw a significant decline in August, while bitcoin futures experienced an uptick. This shift reflects a broader trend of investors moving away from alternative cryptocurrencies and gravitating towards bitcoin.
The introduction of exchange-traded funds (ETFs) tied to ether prices in the U.S. in late July provided a new avenue for investors to gain exposure to the cryptocurrency without the need for direct storage. However, data from CCData, a digital assets data provider, indicates that activity in ether derivatives on CME has cooled since then. Ether futures trading volume dropped by 28.7% to $14.8 billion in August, marking the lowest level since December 2023. Additionally, ether options volume fell by 37% to $567 million.
CCData noted that the decline in trading volumes for ether instruments suggests lower-than-expected institutional interest, particularly following the launch of spot ETH ETFs. The reduced inflows into these ETFs in August further support this trend. Seasonal factors may have also contributed to the decreased trading activity, with expectations that this trend could continue into September.
Before the introduction of spot ETFs, futures and futures-based ETFs were the primary regulated options for traditional institutions in the U.S. Spot products are generally seen as superior to futures-based ETFs, which are susceptible to
