Opinion: Institutions flock to Ethereum after Shapella upgrade
According to official CME Group data, CME futures open interest has risen to the highest level since March 2022, indicating that institutional traders are pouring into the encryption market. Ethereum implemented its much-anticipated Shapella hard fork, also known as the Shanghai upgrade, on April 12, reducing the risk of staking the blockchain’s native token, ether (ETH), by allowing locked-up tokens to be withdrawn at will. The pivotal event sparked institutional interest in the second-largest cryptocurrency by market capitalization (ETH).
The number of active or open ether futures contracts traded on the Chicago Mercantile Exchange (CME) has increased by 39% to 6,248 ETH since April 10. In dollar terms, open interest rose more than 70% to $633 million.
Institutions often prefer regulated products like CME futures, which allow them exposure to digital assets without owning them. As such, CME futures pegged to ether and bitcoin are widely considered proxies for institutional activity.
The number of active or open ether futures contracts traded on the Chicago Mercantile Exchange (CME) has increased by 39% to 6,248 ETH since April 10. In dollar terms, open interest rose more than 70% to $633 million.
Institutions often prefer regulated products like CME futures, which allow them exposure to digital assets without owning them. As such, CME futures pegged to ether and bitcoin are widely considered proxies for institutional activity.