Ethereum Futures Hits $14B as Optimism Builds for Spot ETF Approval

Ethereum futures

The dollar value locked in active Ethereum futures contracts surged 25% to a record $14.05 billion in the past 24 hours.

The dollar value locked in active Ethereum futures contracts, known as notional open interest, has surged by 25% to a record $14.05 billion in the past 24 hours, according to data from Coinglass. This surpasses the previous peak of $13.2 billion set on March 15. The increase likely reflects investor optimism about the potential approval of the spot Ether ETF by the SEC.

The Wall Street Journal (WSJ) reported that the SEC’s Trading and Markets Division instructed asset managers on Monday to amend and refile their applications. These applications, known as Form 19b-4, inform the SEC of proposed rule changes and require the agency’s approval before the spot ETF can become effective.

Ether Price Surges on ETF Approval Optimism

Ethereum futures have become more popular due to a sudden positive shift in sentiment regarding the potential approval of spot ETH exchange-traded funds (ETFs) in the U.S. This surge indicates a renewed influx of capital into the Ether market, mainly on the bullish side. ETH, the second-largest cryptocurrency by market cap, rose nearly 22% to $3,778, according to data from CryptocurrenciesToWatch. The increase in open interest, along with a price rise, confirms an uptrend.

According to Bloomberg’s ETF analysts, the likelihood of the U.S. Securities and Exchange Commission’s (SEC) approval of the spot ETH ETF has increased. The analysts have raised the odds of spot Ether ETF approval to 75% from 25% after hearing that the SEC may be changing its stance on this issue. Additionally, the SEC has requested exchanges interested in listing and trading potential spot Ether ETFs to promptly update their 19b-4 filings, indicating that the regulator intends to expedite the process.

The crypto community on X is speculating that the SEC might approve a spot ETH ETF, which could indicate a more positive regulatory approach to crypto. The SEC is expected to decide on the VanEck spot Ether ETF on May 23. For ETFs to start trading on stock exchanges, they need to receive SEC approval for both the 19b-4 filings and the S-1 registration statements.