Source: TradingView Futures are a kind of monetary agreement that comprise “a large part of the world’s quadrillion dollar derivatives market. They permit users to bank on “an asset’s future cost by going & ldquo; long & rdquo; when they believe the cost will increase or & ldquo; short & rdquo; when they believe it will decrease in worth. Signing a futures agreement binds a trader to buy or sell an asset at a specific price in the future
. In a press release revealing Ether futures, CME Group Global Head of Equity Index and Alternative Investment Products Tim McCourt mentioned the growing need for Ether in December. He said:
“& ldquo; Based on increasing customer demand and robust growth in our Bitcoin futures and choices markets, our company believe the addition of Ether futures will offer our customers with an important tool to trade and hedge this growing cryptocurrency”
& rdquo; CME Group lists futures for different assets, including precious metals, equities, and commodities.
It first moved into cryptocurrencies in December 2017; the very same month, Bitcoin struck a high of $19,600 amidst a rise of mainstream interest. Bitcoin crashed as the crypto space descended into a bear market, causing a relative lack of interest in the CME futures product.
The landscape has altered ever since, nevertheless. According to data from Skew, open interest for Bitcoin futures on CME Group currently represents $2.03 billion of an overall of $13.29 billion. Binance and OKEx currently top the futures market for the crypto possession, with $2.28 billion and $2.23 billion in open interest, respectively.
Open interest is a helpful data point for analyzing current futures volume—– it signifies the number of derivatives contracts that have not been settled.
Organizations Eyeing Ethereum
Though Bitcoin has just recently taken much of the crypto spotlight, drawing prevalent institutional interest, ETH could well be poised to follow suit. As with Bitcoin, a futures product might play a crucial function in that result.
ETH consistently struck all-time highs recently, rising from around $1,300 to over $1,700 on Friday. It then experienced a dip in the lead-up to the CME listing, possibly from those who thought the occasion could trigger a significant sell-off.
It recuperated early Monday, now trading at $1,648, according to CME. Crypto Twitter was likewise awash with speculation over how the market would respond.
ETH futures volume is substantially except Bitcoin, led by Binance, which has $1.26 billion in open interest according to skew.