Ethereum (ETH) futures have reached unprecedented popularity, driven by renewed optimism regarding the potential approval of spot ETH exchange-traded funds (ETFs) in the United States.
Ethereum ETF Hopes Push Futures Open Interest to a Record of $14 Billion
Notional open interest, which represents the dollar value locked in active Ethereum futures contracts, rose 25% in a single day to $14.05 billion, surpassing the previous peak of $13.2 billion set on March 15, according to data from Coinglass.
The increase in open interest indicates a strong inflow of capital into the Ethereum market, predominantly from bullish investors.
This sentiment was further supported by a 20% increase in the price of ETH, which climbed to $3,720. The simultaneous increase in open interest and price is often seen as a confirmation of an upward trend.
The increased interest in Ethereum futures follows a positive shift in expectations regarding the approval of spot ETH ETFs.
Late Monday, Bloomberg's ETF analysts raised the likelihood of the U.S. Securities and Exchange Commission (SEC) approving these ETFs from 25% to 75%.
Additionally, the SEC has requested exchanges seeking to list and trade potential spot Ethereum ETFs to expedite their 19b-4 filings.
This development has sparked speculation within the crypto community on X that the SEC may be headed for a positive decision on spot ETH ETFs. Such a move would reflect a broader constructive regulatory stance towards cryptocurrencies.
The SEC is scheduled to make a decision on the VanEck spot Ethereum ETF on May 23. For Ethereum ETFs to begin trading on exchanges, the SEC must approve both 19b-4 filings and S-1 registration statements.
*This is not investment advice.
