Open interest in #Ethereum options on CME reached an all-time high, a possible indicator of interest from institutional investors.
This action is being taken in anticipation of the October 2nd deadline for ETH ETF futures approval.
Another indicator of purchasing activity, the whale transaction statistic, indicates a rise on the latest decline.
Add to the optimism generated by the acquisition of 10,000 to 100,000 ETH by existing holders.
Due to recent events surrounding the approval of a futures Exchange-Traded Fund (ETF) for Ethereum (ETH), the token's price is expected to see extreme volatility in the near future (ETF). Users on Twitter speculate that the ETF's approval date will be October 2. The on-chain measures show that institutional investors and "whales" are hedging their bets in anticipation of the ETF's possible acceptance.
Article continues below: First Ethereum futures ETF expected to receive clearance by October 2
As the ETF was approved for Ethereum futures, volatility shot up.
The open interest of ETH options on the CME exchange shows that investors are preparing for the approval of an Ethereum futures exchange-traded fund on October 2. See the chart below for more details. We've seen a record high in open interest of $352 million.
Looking at other on-chain indicators, however, reveals evidence that these investors are likely anticipating a bullish conclusion, even if this chart does not indicate a directional bias.
On September 24, 2018, there were 20.19 million Ether whales, up from 19.1 million on August 19. This is according to Santiment's Supply Distribution based on balance of addresses. In all, these whales increased their $ETH reserves by 1.09 million.
These actions are consistent with a buy-the-dip accumulation strategy, given that the price of Ethereum (ETH) decreased by roughly 15% between August 15 and August 20.
Another indicator that these investors are gearing up for the creation of an #ETF based on Ether futures is the frequency with which large purchases are made. As a measure of investor confidence, this index follows deals of $100,000 or more in value. When this on-chain statistic increases following a decrease, it may signal that holders are wanting to buy, whereas when it decreases, it may indicate that they are looking to sell.
The indicator spiked significantly on September 12, coinciding with the 12-day low in Ethereum (ETH) price to $1,551. This increase might be interpreted as accumulation.
