Ether (ETH), the market capitalization’s second largest cryptocurrency, was up Tuesday, moving near $1,769 and climbing 3.1 percent in 24 hours as of 21:15 UTC (4:15 p.m. ET). The digital asset hit a fresh all-time high Tuesday of $1,824.
Monday was the first day on the Chicago Mercantile Exchange for ether futures contracts. Overall, on the day, there were 388 ether contracts exchanged by number.
There will be buyers holding an eye on this business. Outside of CME, ether futures are now a near-$6 billion business, with Binance leading the way Monday with an open interest of $1.3 billion.
Bullishness for ETH, BTC
After Tesla announced a $1.5 billion bitcoin stake, Ethereum’s all-time peak coincided with bitcoin breaking a fresh mark of $48,000, much of which is contributing to the traction of mass crypto acceptance.
The exchange had almost 400 contracts exchanged on its website on the CME’s first day of selling ether futures. According to Coin Market Cap, that equates to about 19,400 ETH, or $33 million.
The launch may, in addition, boost market uncertainty. Institutions will be willing to deal in huge amounts, when there is more demand than ever before in intangible assets today. As the CME released bitcoin futures in 2017, it almost instantly fell the price from $20,000 to $13,000.
Separately, traders should expect to see a further increase in institutional interest in digital asset futures with crypto fund manager Grayscale introducing further ETH to their Trust, especially as no actual distribution of ETH occurs on the settlement date, making it simpler for institutional players to participate as no digital asset custody is needed.
With exchanges such as Binance, Deribit, OKEx and some others having added ETH futures trading after the 2017 bull run, CME is not the first to deliver Ethereum futures trading.
But the announcement of the CME represents a significant breakthrough for Ethereum, providing a fresh road to entry to the native properties of the biggest decentralized blockchain production network to retail investors and risk-averse companies.
What is the Chicago Mercantile Exchange?
CME Group Inc. is an American integrated trading business (Chicago Mercantile Exchange, Chicago Board of Trade, New York Mercantile Exchange, The Commodities Exchange).
It is the biggest financial futures exchange in the world and deals in asset groups that involve farm goods, currency, oil, interest rates, metals, and equity indices.
The business uses its CME Globex trading platform to sell futures contracts and futures options, fixed income trading through BrokerTec and foreign exchange trading on the EBS platform.
In addition, a central clearing provider for counterparties, CME Clearing, runs. CME Group also provides optimization and reconciliation services through TriOptima, and trade management services through Traiana, with a variety of pre- and post-trade goods and facilities underpinning the entire lifecycle of a company.
The business was described by The Economist as “the biggest financial exchange you have never heard of.” In 2019, for the sixth consecutive year, Brand Finance declared CME Group the world’s fastest growing and most profitable exchange brand, whereas it had the fifth largest brand strength.