Ethereum (ETH) ETF Rumors Draw Traditional Financial Interest: Report

“Tradfi” may be starting to rotate into eth ETF trading after two months.

According to a new report from Reflexivity Research, CME's annualized base has increased steadily, reaching more than 18%. bitcoin open interest on CME has also seen continuous growth, surpassing $4.5 billion since the trend began two months ago.

In particular, an interesting pattern has emerged when comparing CME activities between bitcoin and ethereum.

• Velo data crypto-market-structure-powered-by-velo-data” target=”_blank” rel=”noopener” data-wpel-link=”external”>analysis reveals that the ethereum futures basis on CME is currently trading at a 5% premium compared to bitcoin, exceeding 20%.
• Furthermore, open interest for eth on CME has started to rise, although it lags behind bitcoin's initial rise.
• While it may be premature to confirm, there are signs that 'tradfi' could be initiating a shift towards eth ETF trading after a two-month period.
• Similarly, the Grayscale discount is narrowing, falling below 10% for the first time since July 2021. This decline is indicative of growing demand for bitcoin exposure and speculation over the possible approval of an ETF of bitcoin, along with the transformation of GBTC's trust structure into an ETF.
• The report also noted a parallel trend in Grayscale's ETHE product, as its discount to NAV is now below 15%.
• Meanwhile, implied volatility in the options market has steadily declined amid the gradual upward movement of both bitcoin and ethereum.
• However, there has been a slight increase in volatility over 1-week and 1-month periods during the recent rapid price rise.
• With volatility now below 60%, it can be considered attractive for an asset that typically trades at up to 80% volatility and appears to be waking up from a period of dormancy.

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