Open interest in futures and options on Ethereum grew 28.6% compared to December. The highest demand for ETH derivatives is on Binance, OKEx and Huobi.
Investors believe in Ethereum
Open interest in ETH derivatives reached a record high. This is evidenced by the research of the analytical company The Block Research. According to the presented results, in the first week of January, open interest in ETH futures and options increased by 28.6% compared to December 2020.
“Ethereum futures peaked at $ 2.65 billion, up 28.6% from their peak in December. Binance remains the market leader with 23.8%, OKEx is in second place with 17.8%, and Huobi is in third place with 14.4%, ”the study said.
The highest open interest in ETH options was recorded on the Deribit exchange, which accounts for about 86.8% of the market, and the total volume of positions was $ 1.22 billion.
The indicator of open interest in ETH futures and options began to increase immediately after the token price exceeded $ 800.
Ethereum whales accumulate tokens in anticipation of record growth
This behavior of investors was expected. At the end of last year, analysts at the investment company Grayscale announced that new investors will actively invest in ETH tokens.
According to a Grayscale report, 17% of new investments in Ethereum Trust in Q3 2020 came from new institutional investors. The company noted that many large investors entering the cryptocurrency space for the first time need Ethereum, not Bitcoin.
This opinion is also shared by Messari analyst Ryan Watkins, who previously stated that investors would prefer to reinvest the profits from the sale of bitcoin in ETH tokens.
“Forecast for 2021: In 2021, institutions will start investing in ETH. If you’ve already recognized Bitcoin as a valuable asset, it’s easier for you to take the next step and switch from BTC to ETH, ”Watkins wrote.
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