Ether futures open interest hits $14B, up 40% from $10B at the start of 2024.
Ether’s price surged 22% to $3787, boosting market momentum.
SEC may approve spot ether ETFs, with odds rising from 25% to 75%.
The overall open interest in ether futures has increased significantly, reaching a record $14 billion. This signifies a 40% increase from its starting value of $10 billion at the beginning of 2024. Indicating market activity and trader sentiments in the cryptocurrency arena, this statistic adds up the value of active futures contracts that haven’t been settled yet.
#BingVentures #ChartoftheDay According to @coinglass_com data, the total open interest in ETH's futures has exceeded $14.8 billion, hitting record highs.According to news reports, the US #SEC is urging exchanges involved in listing and trading shares of spot Ether ETFs to… pic.twitter.com/gQfbqur6KH
— Bing Ventures (@BingVentures) May 21, 2024
Market Dynamics and Price Surge
The surge in Ether futures open interest parallels a notable 22% increase in ether’s price, currently hovering around $3787. This price spike is giving the futures market more momentum and is indicative of rising transaction volumes and growing investor confidence.
Market watchers also attribute this bullish view to renewed optimism about the Securities and Exchange Commission (SEC) of the United States potentially approving spot ether exchange-traded funds (ETFs).
Analysts’ estimates of the likelihood that the SEC will approve these financial products have reportedly altered. Bloomberg ETF analysts James Seyffart and Eric Balchunas now say they had estimated a 25% possibility, but now they feel there is a 75% chance.
Update: @JSeyff and I are increasing our odds of spot Ether ETF approval to 75% (up from 25%), hearing chatter this afternoon that SEC could be doing a 180 on this (increasingly political issue), so now everyone scrambling (like us everyone else assumed they'd be denied). See… https://t.co/gcxgYHz3om
— Eric Balchunas (@EricBalchunas) May 20, 2024
Regulatory Developments
The SEC’s proactive stance is evident as it requests amended filings from ETF issuers, crucial for the approval process of spot Ether ETFs. This regulatory clarity is pivotal as deadlines for the first round of ETF applications approach, with VanEck’s submission due on May 23 and Ark Invest/21 Shares’ on May 24.
As regulatory decisions are made, the cryptocurrency community expects increased market volatility and investor interest. The market for cryptocurrency derivatives is poised for change as a result of the record-high open interest in ether futures, price increases, and regulatory confidence.
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