Ethereum January 2024 Update

TradFi Markets:
CME futures saw a slight decrease in open interest MoM, with notable volume in the week of the spot BTC ETF approval.  We expect volume and open interest in ETH CME futures to remain fairly stagnant. In comparison, we expect BTC CME futures activity to remain strong in the wake of the BTC ETF approval, increased institutional interest in BTC, and an upcoming catalyst in the form of the halving for BTC.

Source: Velo Data

ETH CME options have seen a slight increase in open interest following a sharp decrease at the end of 2023. Volume remains fairly muted, and we expect volume and open interest to remain relatively stagnant until the ETH ETF narrative starts coming into full force.

Source: Velo Data

CEX Activity:
ETH CEX volume spiked around the days of the spot BTC ETF approval, but quickly decreased back down to pre BTC ETF levels. Open interest remained fairly flat, however, it has slowly been trending up for the past few years and we expect to see a significant expansion in open interest at some point this year.