ethereum derivatives volumes on the CME plummeted sharply following the launch of ethereum spot ETFs, reflecting waning institutional interest.
ethereum derivatives trading volumes on the CME exchange saw a significant decline in August, as ethereum futures volume plummeted 28.7% to $14.8 billion, while options volume fell 37.0% to $567 million, marking the lowest levels since December 2023.
Data provided by CCData sample that the drop comes just months after the introduction of ethereum spot exchange-traded funds in late May, indicating “lower than expected institutional interest in the asset.”
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Overall, CME derivatives trading volume plunged 1.16% to $129 billion. While bitcoin (btc) futures saw a 3.74% increase to $104 billion, bitcoin options trading fell 13.4% to $2.42 billion. ethereum (eth)’s falling trading volumes contrast with bitcoin’s strong performance, which is up more than 45% this year compared to ethereum’s more modest 20% increase.
As crypto.news previously reported, cryptocurrency analyst Noelle Acheson attributed the lower institutional interest in ethereum ETFs to a preference for bitcoin among investors seeking diversification. Acheson compared the current ETF landscape to the metals market, where gold ETFs control over $100 billion in assets, while silver ETFs hold less than $20 billion. Nonetheless, the analyst anticipates future growth in ethereum ETF inflows as institutional investor interest may increase over time.
ethereum’s weaker performance is partly due to intensifying competition from rivals such as Solana (SOL) and TRON (TRX), which are also attracting attention. Seasonality effects in August may also have contributed to the decline in trading activity, and it is expected that this trend may extend into September.
