Ether options trading volume on CME hits new peak in May
Quick Take
- According to data from The Block, the monthly trading volume of CME options on ether futures reached an all-time high in May.
- Ether implied volatility has experienced a notable surge alongside spot ether ETF news.
Monthly trading volumes of Chicago Mercantile Exchange options on ether futures have reached an all-time high this month.
According to The Block's Data Dashboard, the trading volume of options on ether futures on the CME reached $1.26 billion for May, with two days remaining in the month. This represents a significant increase compared to April's volume of $615.75 million and sets a record high for monthly trading volume, according to The Block's data.
According to Wednesday's Wintermute market update, the amount of outstanding ether futures contracts on the CME is nearing its highest-ever level.
Wintermute analysts suggested that this increase in open interest indicates that institutional investors are increasingly interested in trading ether relative to bitcoin amid anticipation of the upcoming launch of spot ether ETFs.
"Ether's CME open interest is approaching all-time highs, indicating institutional interest in the ETH/BTC trade ahead of S-1 filings and an eventual launch," Wintermute analysts said.
Ether options implied volatility surges
According to Wintermute, ether's implied volatility, which measures market expectations for future volatility in specific time periods based on options prices, experienced a notable surge due to heightened expectations for significant price movements.
"Significant spikes were observed in the 1-week, 1-month, 3-month, and 6-month at-the-money (ATM) implied volatilites," Wintermute analysts added.
Ether's price decreased by over 2.2% in the past 24 hours and was changing hands for $3,804 at 7:56 a.m. ET, according to The Block’s Price Page.
The GM 30 Index, representing a selection of the top 30 cryptocurrencies, decreased by 1% to 145.18 in the same period.
Disclaimer: Evgeny Gaevoy, the founder and CEO of Wintermute, previously sat on The Block’s board of directors from April 2023 to early November 2023 and remains a minority shareholder.
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