Today marked the launch of Ethereum (CCC:ETH-USD) futures on the Chicago Mercantile Exchange, signaling increased institutional acceptance of cryptocurrency assets at a time when the second-largest cryptocurrency is notching record highs.
CoinDesk reports that much of the initial activity in ether futures has been concentrated around the February expiry contract. Analysts expect to see increased institutional investment in ether as a result of the introduction of futures contracts, bolstering the recent bullish run in Ethereum, which just notched new record highs above $1,600.
That price action was partly in anticipation of today’s introduction of ether futures to the CME, but also because of crypto fund manager Grayscale reopening its Grayscale Ethereum Trust (OTCMKTS:ETHE) to new investors after closing it in late December. Per Business Insider, the fund saw inflows of nearly 100,000 ETH just in the past week.
Taken together, the overall sentiment for Ethereum is very bullish. Some have even gone as far as to say ETH will hit $5,000. Regardless of whether you believe that narrative, the Ethereum rally is unlikely to dissipate anytime soon.
On the date of publication, Vivian Medithi did not have (either directly or indirectly) any positions in the securities mentioned in this article.