Ethereum (ETH) Continues to Benefit From Improving Liquidity Conditions - JPMorgan

The Ethereum (ETH) market has continued to mature in recent months as open interest on CME ethereum futures grows sharply and liquidity conditions improve, JPMorgan’s quant Nikolaos Panigirtzoglou writes in a note to clients.

As a result, Ethereum soared to fresh all-time highs this morning. The world’s second-largest digital asset is now up almost 54% in April.

“The open interest in CME Ethereum futures has increased again to $540mn in three months, while a similar level of open interest in CME Bitcoin futures took more than two years after listing in late 2017. Effectively, once Bitcoin futures became more accepted among institutional investors, they became more comfortable with cryptocurrencies paving the way for a more rapid acceptance of ethereum futures.”

“That still leaves room for growth, as open interest in Ethereum futures stands at around 23% of that of Bitcoin futures, while the market cap of ethereum is approaching half that of bitcoin and the volume of spot trading now more than four-fifth,” Panigirtzoglou says.

Overall, the crypto markets remain to be “crypto rich,” as well as “cash poor” at the same time, as lending USD in crypto markets continues to attract high annual interest rates, adds JPMorgan’s quant.

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