Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

After Bitcoin, Institutions Finally Turning To Ethereum

Published 04/29/2021, 07:31 AM
Updated 05/08/2020, 11:50 AM

Institutional investors and whales have been increasing their Ethereum holdings over the past few weeks.

Key Takeaways

  • The open interest in CME's Ethereum Futures has climbed steadily since it launched on Feb. 8.
  • Along the same lines, the number of whales on the network has also shot up.
  • The mounting buying pressure could help ETH catch up with Bitcoin's bull run.

While many retail investors have been shaken out of the market due to the high volatility, institutional demand for Ethereum is rising.

Institutional Demand at Record High

Ethereum’s scalability issues have drawn many investors and developers away over the past few years. However, the London hard fork slated for July seems to be attracting a lot of attention.

Alongside the “ultra sound money” meme, institutional demand for Ethereum also appears to be picking up.

Tweet

Ever since CME launched its Ether futures on Feb. 8, open interest and daily volumes have been rising steadily. Data from Skew shows that the total number of outstanding contracts on the world’s largest financial derivatives exchange sits at $357 million while trading volume surged to $680 million on Apr. 22.

CME Ethereum Futures

According to Arcane Research, the spike in institutional demand is related to the London hard fork and a new Ethereum-based financial product launched in Canada.

“The growing open interest and trading volume correspond with the approval of 4 Canadian Ether ETFs last week as Purpose Investments, CI Global Asset Management, Evolve, and 3iQ all launched their ETFs,” said the cryptocurrency research firm.

Ethereum Whales on a Buying Spree

On-chain data shows a similar increase in demand for Ethereum among larger holders. Ether’s supply distribution chart shows that the number of addresses with 10,000 to 1,000,000 ETH surged by 5.22% over the past two weeks.

Roughly 57 whales have joined the network since then.

The growing number of large investors backing Etherum may seem insignificant at first glance. However, when considering these whales hold between $27 million and $2.7 billion in ETH, the sudden spike in buy orders is substantial.

Ethereum Supply Distribution

The rising buying pressure behind Ethereum has been significant enough to drive prices to a new all-time high of $2,740, bringing its correlation with Bitcoin to a multi-year low of -0.18.

As long as Ether continues climbing while BTC tumbles, there is a high probability that more institutions will turn to this altcoin and help push prices even higher.

Original Post

Latest comments

Good day Sir. please I will like to joint you in doing marketing. but I don't know how to go about it. please can help me out??
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.