It has been nearly nine days since CME Ethereum futures started, and derivatives are gaining popularity among institutional investors. The aforementioned data came out with an analysis that indicated that the Glassnode team’s daily trading volume of CME Ethereum futures has increased to $ 75.8 million. This amount also means a 90% increase from the daily trading volume of $ 40 million on Friday.

 

 

Open positions reached 62 million dollars

The impressive growth in the daily trading volume of the Ethereum derivative is seen as proof of institutional demand for ETH. Also, open positions in CME Ethereum futures reached $ 62 million, as summarized by the team at Glassnode in the tweet below.

The Ethereum demand of institutional investors is also manifested by the continuous accumulation of ETH by Grayscale Investments. Grayscale has accumulated 194,522 ETH in the last 30 days since the Ethereum Trust reopened, according to data from Bybt.com. Calculated at $ 1,800, this amount of Ethereum is roughly equivalent to $ 350 million.

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Ethereum and Uniswap price analysis: critical levels to watch for ETH and UNI

 

What does trust type investments mean, how do they work?

Ethereum, accumulated by institutions such as Grayscale, also has the possibility of never leaving the vaults. According to Nate Maddrey of CoinMetrics Research, such digital assets may remain indefinitely with the respective Trusts as described below.

An important feature of Grayscale Trusts is that there is no way to use the underlying crypto, at least for now. So BTC or ETH stays there indefinitely when invested in these Trust products.

This supply pool becomes even stronger when mixed with Chicago Mercantile Exchange (CME) futures. CME futures offer institutional investors another way of exposure to both long and short crypto derivatives.

Institutional investors can benefit from Grayscale Bitcoin Trust premium by simultaneously depositing BTC (in exchange for GBTC shares priced in NAV) to Trust while shortening BTC in CME. This allows investors to remain neutral in the market and pocket the premium in GBTC.

CME recently launched ETH futures, which means that more ETH will begin to lock onto Grayscale Ethereum Trust as long as there is at least a premium.

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