The enormous growth of Ethereum futures and options indicates that institutional investors are turning to the second largest cryptocurrency by market capitalization.
According to the latest report by crypto investment consultancy company Two Prime Digital Assets, the 80-fold increase in open positions of Ether (ETH) options over the past year is not only due to individual investors. In the report, the company stated: “Corporate money managers took action to protect their net long positions from volatility.”
The same exponential growth can be seen in the Ethereum futures market. According to Bybt data, the open positions of ETH futures increased 20 times in the same period and reached $ 7.68 billion as of the time of translation publication.
As institutional demand for Ether increases, Two Prime predicts that ETH will also begin to show a significant departure from Bitcoin (BTC) price action. According to another estimate, the participation of institutional investors will gradually decrease the volatility.
According to CoinShares’ weekly Digital Asset Funds Flow report, $ 34 million was transferred to ETH products last week. However, the total amount transferred to ETH products was 792 million dollars.