Institutional interest wanes as Ethereum futures and options volumes drop: CCData

Following the launch of spot Ethereum ETFs, the volume of Ethereum derivatives on CME dropped sharply, indicating waning institutional interest.

Ethereum derivatives trading volume on the CME exchange saw a significant decline in August, with Ethereum futures volume falling 28.7% to $14.8 billion and options volume falling 37.0% to $567 million, the lowest level since December 2023.

Data provided by CCData shows that the decline occurred just a few months after the launch of spot Ethereum exchange-traded funds in late May, suggesting “lower-than-expected institutional interest in the asset.”

CME institutional volume | Source: CCData

Overall, CME’s derivatives trading volume fell 1.16% to $129 billion. Bitcoin (BTC) futures rose 3.74% to $104 billion, while Bitcoin options fell 13.4% to $2.42 billion. The decline in Ethereum (ETH) trading volumes contrasts with Bitcoin’s strong performance, which is up over 45% this year compared to Ethereum’s more modest 20% increase.

As crypto.news previously reported, crypto analyst Noelle Acheson attributed the decline in institutional interest in Ethereum ETFs to a preference for Bitcoin among investors seeking diversification. Acheson likened the current ETF landscape to the metals market, where gold ETFs hold over $100 billion in assets, while silver ETFs hold less than $20 billion. However, the analyst sees future growth in Ethereum ETF inflows as institutional interest could grow over time.

Ethereum’s weak performance is partly due to intense competition from notable rivals like Solana (SOL) and TRON (TRX). Seasonal effects in August may have also contributed to the lower trading activity, and this trend is expected to extend into September.