The massive growth in the Ethereum futures and options space suggests significant institutional involvement in the second largest cryptocurrency by market capitalization.
According to a recent report from crypto investment advisory firm Two Prime Digital Assets The 80x growth in open interest in Ether (ETH) options goes beyond mere retail speculationAs part of its report, the company argued: “Institutional money managers have begun to hedge long net portfolios against excessive volatility events.”.
The same exponential growth can also be observed on the ETH derivatives market.In fact, data comes from the cryptocurrency aggregator Bybt, show that the open interest in ETH futures has risen 20-fold over the same period and it is now over $ 7.68 billion at the time of this writing.
Amid the growing institutional demand for ETH Two Prime also predicted that ether will deviate significantly from Bitcoin’s (BTC) price movement.The Two Prime report recorded that too The participation of users with large amounts of money leads to a constant decrease in the realized volatility.
In another example of the apparent increase in institutional appetite for Ethereum, the CoinShares report reports “Digital Asset Fund Flows Weekly”. showed that ETH broke out of the trend towards exits of investment products for crypto assets.
According to the report by the Crypto Investment Manager on Monday In the past week, the ETH achieved a turnover of 34 million US dollars with investment productsWith that number, the total ETH inflow for crypto fund managers comes to $ 792 million. approx. 8% of the total assets under management of these fundsaccording to CoinShares.
The $ 34 million investment inflow into ETH came amid the lowest weekly inflow of Bitcoin since October 2020. In fact, the fund’s movements were mostly BTC outflows, with $ 21 million (the largest weekly outflow on record) moving in the opposite direction.
As Cointelegraph reported in February, ETH accounted for around 80% of institutional crypto inflows in the first week of the month.