SotN #33: Joseph Lubin on CME ETH Futures (Future of ETH, 2021 Bull Run, Consensys)


Traders bet on ETH futures

Traders bet on ETH futures

  • Investors believe in ETH more than in BTC

  • Open interest in ETH futures is constantly growing

  • Institutional Investors Can Buy ETH Futures

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The two main cryptocurrencies – Bitcoin and Ether – are trying to overcome resistance and reach their highs. And if the BTC aims at $ 10,000, then the ETH is desperately trying to reach the $ 220 mark.

Traders bet on ETH futures

However, according to experts, both coins show high volatility. However, traders tend to trust the ETH token more than the BTC..

The options market does not believe in the success of the ETH


The options market has shown that the probability of the ETH reaching the $ 220 mark is no more than 28%. Bitcoin has no more chances of success. Experts suggest that the probability of the BTC reaching the $ 10,000 mark is no more than 29%. However, the report of the OKEx cryptocurrency exchange indicates that the implied volatility of the ETH is slightly lower than that of the BTC, which gives certain guarantees to traders.

“Changes in open interest are vital metrics to show if there is new money coming into the market. Skew data shows that cumulative open interest in ETH futures and swaps has grown steadily since mid-May, reaching its highest level in a month. An uptrend in open interest can also indicate that an existing market trend may pick up steam. Therefore, it is likely to continue. In contrast, BTC futures and the OKEx open swap exchange have been somewhat supported at current levels. Despite the fact that we do not expect a sudden drop in open interest in BTC in the short term, ”the report says..

In addition, OKEX experts argue that UTS spot prices are positive, that is, traders were willing to pay an increased price to buy ETH futures, while physical delivery BTC futures were traded at a discount..

Will ETH become a real competitor to BTC


So far, the ETH derivatives market is just emerging, while the MTC option trading has already become widespread. More recently, BeInCrypto reported that more and more institutional investors are interested in ETH futures. To meet the growing demand, the ErisX platform, which positions itself as a derivatives clearinghouse, announced the launch of a new feature – trading in futures on the ETH. This is the first project in the world to offer such services..

“Starting today, individual and institutional investors can access physical delivery of ETH-USD futures contracts with monthly and quarterly expiration. Futures contracts are traded on a single and innovative platform that provides price transparency and collateral efficiency, ”the company said..

The Commodity Futures Trading Commission (CFTC) has been postponing for a long time the issue of issuing a license to trade bitcoin futures. However, at the beginning of the year it became known that the permit would still be issued, and the ErixS platform would become the first official platform for trading such derivatives..


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Traders bet on ETH futures

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