Contents
Key facts:
On Thursday, it was agreed in Deribit a new cap of USD 49 million in options of ETH.
The price of the criptomoneda evidence an advance of 21.8% for the past seven days.
The rebound in the price of the criptomoneda ether (ETH) is positively influenced in the derivatives market. The volume of trade to the options and the open interest of the currency of Ethereum reached this week new caps historical.
According to the firm analysis Skew on Thursday, institutional investors were more active in the markets of Deribit and OKEx, for example. In the first bag was sold to a cap of 49 million for the options of ETH, while the second house change the amount amounted to USD 7.4 million.
In the area of the open interest Skew reflects that also reached new caps. In the panamanian Deribit the figure climbed up to us $ 225 million in July and in the case of OKEx the amount reached USD 16 million.
The rise in the price of ether, as well as in derivative markets, would have their origin in developments announced for what will be the launch of the new version of the network Ethereum 2.0. Another element to consider is the increased use who have experienced the applications Defined in the blockchain of contracts is smart.
The rebound in the price of ETH would be generating new caps in the market of its derivatives. Source: Skew.
At this point it is important to explain the options, such as ether, are financial derivative instruments for the purchase or sale of securities at a specified price with an expiration date set to the future. In the case of the open interest is the volume or total number of open positions in futures contracts, but that have not been closed on a specific day.
Derivatives of ether to the upside
The derivatives market of ether has sparked interest over the past few months. Breaking News reported on June 2 that the open interest in the derivatives of ether experienced a spike in unusual in may. At that time it was reported that the open interest involved at 535,000 units of ether, which resulted in a cap of 128 million dollars.
In February of this year, analysts already predicted that the market of financial options could be more risky in ether than in bitcoin for the next few months due to volatility. For traders volatility can have a positive impact on the price of financial options.
If there is a greater volatility could experience a higher demand of protection for the options of purchase, that is to say, a bet on the rise and in the sale as a bet on the low.
What happens with the options and the open interest of ETH contrasts with what happens with the options of bitcoin in the market Bakkt. Then announced, with great fanfare in 2019, currently the volume of trade is void, of zero dollars.
The open interest for options bitcoin awakens no enthusiasm in this market, something that contrasts with the figures registered in Deribit with BTC, which in July reached a ceiling of 1,300 million dollars.
Although the derivatives of ether recorded new caps among institutional investors, the amounts traded are relatively small when compared with the numbers that are handled by the exchange houses of cryptocurrencies. For example, in Binance only the pair ETH/USDT traded in 24 hours 253 million dollars, while in Coinbase Pro the figure for the ETH/USD is at $ 57 million.
At the time of publishing this article the price of ether was 284 dollars per unit with a growth rate of 3,03% for the last 24 hours, according to the index of markets Breaking News. In the past seven days the advance is 21.8% according to CoinGecko.