Chicago Mercantile Exchange (CME) futures open interest hit an all-time high since March 2022, pointing to an influx of institutional traders into crypto markets.
Ethereum’s much-anticipated Shapella hard fork, also known as the Shanghai upgrade, which reduces the risks associated with staking the native blockchain token ether (ETH) by allowing easy withdrawal of locked tokens, took place on April 12. implement. The pivotal event sparked institutional interest in ETH, the second-largest cryptocurrency by market capitalization.
The number of active or open ethereum futures contracts traded on the Chicago Mercantile Exchange (CME) has increased by 39% to 6,248 ETH since April 10. In dollar terms, open interest surged more than 70% to $633 million.
Institutions often prefer regulated products like CME futures, which allow them to gain exposure to digital assets without actually owning them. As a result, CME futures tied to ether and bitcoin are widely viewed as proxies for institutional activity.
The latest data from CME shows that since the Shapella upgrade, there has been growing demand from institutional investors for ETH futures. As the market becomes more stable and risk-reduced, more and more institutional traders are investing in Ethereum futures contracts. This trend is expected to continue as the cryptocurrency market matures and regulation increases.
The surge in CME futures open interest is a positive sign for the Ethereum ecosystem as it indicates increasing institutional adoption and acceptance.
As institutional interest increases, usage and demand for the Ethereum network may increase, leading to an increase in the price of Ether.
While the cryptocurrency market remains highly volatile and risky, the growing number of institutions participating in the market provides a sense of stability and legitimacy. As more regulated products emerge, institutional investors are likely to allocate more funds to digital assets, leading to further maturation of the crypto market.