The approval for the leveraged Ether ETF could potentially facilitate the eventual approval of spot ether ETFs, said Volatility Shares CEO.
In the latest development, Volatility shares announced that its 2x leveraged Ethereum ETF would go live for trading next week June 4 onwards. This would be the first leveraged Ether (ETH) ETF available to crypto enthusiasts in the United States.
This launch comes one year after the Volatility Shares 2x Bitcoin fund was open to business starting last June 2023. Seven months after that, the spot Bitcoin ETFs finally received approval from the US Securities and Exchange Commission (SEC).
Stuart Barton, Chief Investment Officer at Volatility Shares, suggested that their accomplishment in securing approval for the leveraged ether ETF could potentially facilitate the eventual approval of spot ether ETFs. Although the SEC recently approved significant regulatory filings associated with the spot funds, they have yet to authorize their launch. Speaking to CoinDesk, Barton said:
“While several details of the spot ETFs are no doubt being presently worked out with the SEC, the launch of a 2x Ether ETF would certainly indicate the SEC growing appetite for further crypto lined ETFs.”
Ethereum Futures OI Hits All-Time High
Ahead of the ETF launch, Ethereum derivatives data is already showing a healthy uptick recently. In the last week, the Ethereum (ETH) price bounced back strongly past $3,900 level after the US SEC approved the 19b-4 filings for the spot Ethereum ETF.
On the other hand, the open interest for the Ethereum futures has reached an unprecedented level. Similarly, the aggregated open interest (OI) in the Ethereum options has surged near all-time high levels. As of Tuesday, May 28, the open interest in Ethereum futures stands at nearly $17.05 billion.
Elevated open interest in Ethereum futures and options contracts typically signifies heightened trading activity and interest from both institutional and retail investors. This surge in Ether’s open interest may result in greater price volatility as traders actively adjust their positions, potentially indicating an imminent substantial price shift. Presently, the combined open interest in Ether options contracts stands at $10.99 billion.
Out of the $17 billion open interest in Ethereum futures, Binance leads with over $6 billion. On the other hand, Bybit follows with $3.48 billion OI, and Okx holds $2.18 billion in OI. In the options market, Deribit holds sway, commanding $9.77 billion out of the total $10.99 billion aggregate volume.
Currently, Ether (ETH) price has been facing strong resistance at $4,000. A breakout above this could trigger the next rally to $5,000.
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