Ethereum Broke a Record with $1.4 Billion After ETF: What Will It Effect on Price?
CME's record breaking open positions in Ethereum futures with ETFs may also increase the ETF price upwards.
Chicago Mercantile Exchange's (CME) Ethereum (ETH) futures got a big boost as spot Ethereum exchange-traded funds (ETFs) began trading in the United States. According to data from CME, the number of open positions in Ethereum futures broke a record with 7,661 contracts, reaching over 383,650 ETH and over $1.4 billion. It is observed that there is a huge increase compared to a month ago, when the previous record was 7,550 contracts.
Giovanni Vicioso, CME's global head of crypto products, stated that the approval and start of trading of spot Ethereum ETFs revived the market and made the following statements:
The approval and commencement of trading of Ethereum ETFs in the US resulted in a significant increase in volumes for our products and led to record open interest in our futures.
Impact on Ethereum price
It is estimated that record open positions in CME's Ethereum futures may have significant effects on the price. The start of trading of ETFs may increase the demand for Ethereum in the market, affecting prices upwards. Investors may consider the opportunity to invest directly in Ethereum, which could lead to an increase in prices. It is also predicted that high transaction volume and open positions may increase liquidity in the market, causing prices to move more dynamically.