Spot Ethereum ETFs made an impressive trading debut in the US on July 24 after months of speculation and regulatory uncertainty.

These ETFs recorded an impressive $1.11 billion in trading volume on their first day of trading, led by $266.5 million inflows from BlackRock. In the first 90 minutes of trading, ETH ETFs recorded $361 million in trading volume, reflecting strong interest and confidence in Ethereum.

Although the first-day trading volume of Ethereum ETFs was only about a quarter of the volume of Bitcoin ETFs at launch, this is still an important development for ETH. In addition to the brief spike in spot prices, the surge in interest in ETFs has also affected the derivatives market.

Ethereum derivatives had a volatile June but a relatively calm July. Over the past week, the entire derivatives market has seen gradual but notable growth, which appears to have accelerated after the ETFs were launched. Data from CoinGlass shows a steady increase in options open interest, especially on July 24, when it reached $7.39 billion.

Chart showing open interest for Ethereum options from July 8 to July 24, 2024 | Source: CoinGlass

Ethereum futures followed a similar trend, although the larger size of the market meant that the $460 million increase in open interest did not appear as a significant spike.

Chart showing open interest for Ethereum futures from July 8 to July 24, 2024 | Source: CoinGlass

An increase in open interest is important because it typically brings increased liquidity and trading volume, providing Ethereum with a more solid market structure. As trading activity around ETH ETFs heats up in the coming weeks, we can expect the derivatives market to continue its upward trend.

Growing institutional interest in ETH ETFs will likely translate into derivatives products. Institutional and professional investors may begin to adopt underlying trading strategies, leading to an increase in open interest and trading volume of derivatives.

Basis trading is a complex strategy that involves taking advantage of price differences between the spot and futures markets. It has become an important part of the Bitcoin market, especially after the launch of Bitcoin ETFs. Previous analysis shows that Bitcoin underlying trading has significantly impacted the market, resulting in flat price action despite an increase in inflows and trading volumes in spot ETFs. With the launch of Ethereum ETFs, the same could happen in the ETH market.

While this trading strategy refrains from any significant price action, it could benefit Ethereum by increasing open interest, creating a more liquid and vibrant derivatives market. Such a market enhances price discovery and risk management.

However, if underlying trading involving Ethereum ETFs and derivatives attracts a lot of interest, it could negatively affect the market. The biggest risk to Ethereum comes from the possibility of market manipulation, where large institutional investors could take advantage of discrepancies to manipulate prices.

Furthermore, if the underlying trade becomes too crowded, it could reduce the profitability of the strategy, leading to sudden withdrawals and possibly sharp corrections. Given the size of Ethereum's DeFi market, this could be especially dangerous for the coin.


Source: https://tapchibitcoin.io/lai-suat-mo-cua-ethereum-tang-khi-su-hung-khoi-cua-thi-truong.html