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Disclaimer: This story was originally published on May 21, 2024.

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Centralized exchanges are seeing a record-breaking surge in open interest for Ether (ETH) futures contracts, reaching $14 billion and indicating a significant increase in trading activity and market interest in the second-largest cryptocurrency by market capitalization.

Data from CoinGlass reveals that the aggregate open interest for ether futures has experienced a significant surge of over 40% since the start of 2024, when it hovered around $10 billion.

Open interest is a key metric that reflects the total value of unsettled futures contracts, offering insights into market sentiment and trading activity surrounding a particular asset.

The increase in Ether open interest coincides with the crypto’s price surge in the past 24 hours, up by almost 19% to over $3,600, according to crypto market data aggregator CoinMarketCap at the time of writing.

The surge in open interest also coms amid a growing optimism surrounding the potential approval of spot Ether exchange-traded funds (ETFs) in the United States. ETF analysts at Bloomberg, James Seyffart and Eric Balchunas, have raised their estimated odds of SEC approval from 25% to 75%.

Recent reports indicate that the SEC has requested issuers to update and refile Form 19b-4, a crucial document that requires the agency's approval before spot ether ETFs can become effective. The first round of deadlines for these filings is rapidly approaching, with VanEck's on May 23 and Ark Invest/21Shares' on May 24.

The increasing anticipation of a spot ether ETF approval appears to be a driving force behind the surge in ether futures trading activity. This development could potentially open up new avenues for institutional and retail investors to gain exposure to ETH, potentially fueling further growth in the cryptocurrency's market capitalization.