Key Points
- Institutional interest in Ethereum (ETH) doubled in November, hitting a record high of 662,600 ETH in CME Futures Open Interest.
- ETH’s momentum against Bitcoin (BTC) has grown, with ETH outperforming BTC over the past few days.
In November, institutional interest in Ethereum (ETH) more than doubled, reaching a record high of 662,600 ETH (approximately $2.5 billion) in CME Futures Open Interest (OI).
This was a significant increase from the 350,950 ETH recorded on 4 November, just before the US Presidential elections.
ETH’s Momentum Against BTC
On 25 November, the CME ETH Futures volume increased even further. The ETH annualized basis, which is the premium that hedge funds receive when they purchase US spot ETH ETFs and short ETH Futures, also rose.
This trend has surpassed the Bitcoin (BTC) trend since the US elections, according to Coinbase research analyst David Han.
While the rise in institutional interest could positively affect ETH’s price, the hedging strategies used by hedge funds could lead to drastic price fluctuations due to liquidations.
ETH’s Performance Against BTC
ETH’s growing momentum against BTC is also reflected in the ETHBTC ratio, which measures ETH’s performance relative to BTC.
In fact, ETH has seen more inflows in the past week, as shown by the nearly 15% increase in the ETHBTC ratio.
This indicates that ETH has outperformed BTC in recent days, particularly during BTC’s latest dip.
However, this trend can only be sustained if the ETHBTC ratio significantly exceeds the 50-day SMA (Simple Moving Average).
At the time of writing, ETH was valued at $3.4K, a 4% increase in the last 24 hours, with immediate targets at $3500 and $3600.
