Ethereum has seen open interest in perpetual futures increase across major centralized crypto derivatives exchanges since early February.
According to CoinGlass, there is currently more than $10.1 billion in total open interest for ETH futures.
“Exchange for cryptocurrency derivatives With open interest surpassing $690 million, Derebit has established an all-time high for the total amount of ether perpetual futures contracts that are now outstanding.
Investors Can Hold Investment For Longer Period
“Perpetual contracts, in contrast to typical futures, have no expiration date, allowing traders to hold onto their investments eternally.
“The recent increase in open interest suggests that trading activity and interest in ether derivatives have increased, potentially as a result of market attention, hedging tactics involving cryptocurrencies, or speculation.
“Anticipations of events that could move the market, including the US Securities and Exchange Commission potentially approving a spot Ether ETF, align with this upswing.
Jerrymusa.com Franklin Templeton, among other investment firms, has lately taken action pointing to increasing institutional interest in the introduction of a spot ether ETF.
“Furthermore, since February’s launch, the funding rate for ether perpetual futures on Deribit has climbed from 0.00045% to 0.035%, indicating a growth in interest in long holdings.
“This change indicates that traders are feeling more optimistic, which could lead to an increase in the price of ETH, which recently increased by 1.57% to $2,841.”