100,000 Micro Ether futures contracts exchange hands-on CME as institutional adoption rises
- The CME group’s Micro Ether futures exploded in popularity; over 100,000 contracts were traded in two weeks.
- Proponents expect a rise in futures activity once Ethereum completes its merge and transitions to the Proof-of-stake consensus mechanism.
- Analysts await further activity in the Ethereum price chart before predicting a breakout or breakdown in the short term.
Micro Ether contracts on CME are off to a slow start compared to Bitcoin micro futures. However, derivatives traders have shown interest in the offering to hedge their exposure to Ethereum.
Ethereum Micro futures contract trades hit a milestone on CME
Two weeks ago, the Chicago Mercantile Exchange (CME) launched micro Ether contracts. The offering has exchanged hands 100,000 times until now. Despite a slow start, the offering has noted a spike in activity over the past two weeks.
The offering is a tenth of the size of the underlying asset, Ethereum, which makes it lucrative for investors. Proponents expect activity in micro Ethereum futures to pick up in the coming months as investors shift focus to Ethereum’s upgrade to ETH2.0.
Ethereum emerged as a deflationary asset since implementing the burn policy in the altcoin. This has fueled the altcoin’s popularity among investors across exchanges.
Tim McCourt, the CME Group’s Global Head of Equity Index, said,
Participation in our Micro Ether futures contract has grown rapidly since its launch two weeks ago, and we are encouraged by the strong customer adoption and support thus far.
Analysts have evaluated the Ethereum price chart and predicted that the altcoin could move in either direction. The altcoin is currently at a make-or-break point. @EzyBitcoin, a cryptocurrency analyst, recently tweeted:
$ETH There is no space left anymore. Please be aware market's volatility. Breakout or breakdown, tomorrow we will know! https://t.co/3zucPzakvT pic.twitter.com/v2aKOeTaHa
— Ezy Bitcoin (@EzyBitcoin) December 22, 2021
FXStreet analysts have predicted that if Ethereum reclaims $4,200 as support, it could resume its uptrend and continue the price rally.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
