Open interest in ether futures on centralized exchanges has reached an unprecedented $14 billion, highlighting increased trading activity for the second-largest cryptocurrency by market capitalization.
Data from CoinGlass reveals that the total dollar value of ether futures contracts hit this record level on Tuesday. Since the start of 2024, daily open interest in ether futures has surged over 40%, rising from approximately $10 billion.
Open interest represents the total value of all outstanding or “unsettled” futures contracts across exchanges, serving as an indicator of market activity and trader sentiment toward a particular asset.
This surge in ether open interest coincides with ether’s price climbing to $3,650, an 18% increase within the last 24 hours, according to The Block’s price data.
A key factor behind this optimism is the potential approval of a spot ether exchange-traded fund (ETF). Bloomberg ETF analysts James Seyffart and Eric Balchunas have raised the probability of the U.S. Securities and Exchange Commission (SEC) approving such a product from 25% to 75%.
Reports indicate that the SEC has requested issuers to update and refile Form 19b-4, a necessary step for spot ether ETFs to gain approval. The first deadlines for these filings are imminent, with VanEck’s due on May 23 and Ark Invest/21Shares’ on May 24.
