Ethereum hits a new all-time high as CME futures go live: Why is ETH price rallying?

CME ETH Futures volume. Source: Arcane Research.
As the volume continues to increase, it would reveal that institutions are also considering ETH as a prospective investment. The analysts said:.
” ETH Futures launch on @CMEGroup Bank The first day of trading for CMEs ETH Futures ended with over $30 million in volume and $20 million in open interest.” Share on TwitterShare on FacebookShare on LinkedInShare on RedditShare on Pinterest2021s Most Anticipated Growth & Wealth-Building OpportunityJoin Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency TogetherCLAIM YOUR SEAT!Read More.

ETH/USDT 15-minute candle price chart (Binance). Source:
Why is ETH rallying after the CME listing of any significance?
Because of the unfavorable sentiment around it prior to the listing, the timing of the ETH rally to a brand-new record-high is notable.
In December 2017, CME listed the Bitcoin futures agreement for the very first time. Within weeks, the rate of Bitcoin crashed from $20,000 to around $6,000.
Many traders and analysts were expecting ETH to fall in a similar way to BTC after Bitcoin futures went live on the CME in December 2017..
There are 2 misconceptions about this theory. First, there is no other way to prove that the CME Bitcoin futures listing was the driver that triggered BTC to plunge in the weeks that followed.
Second, aside from that unprovable theory, there is no clear factor to perceive CME noting ETH as a bearish event.
The distinction in between 2021 and 2017 is that there is extraordinary institutional demand for Ether and cryptocurrencies in general. As Cointelegraph reported, Tesla acquired $1.5 billion worth of Bitcoin, which is almost 10% of its cash holdings.
There is a strong chance that the institutional need for Bitcoin could translate into rising demand for ETH. In this sense, the CME listing might be a significant catalyst for Ethereum in the longer term.
Ryan Seans Adams, an Ethereum financier and researcher, stated:.
” ETH futures go survive on the CME today This is huge. This is a bridge to organizations. This is a thumbs-up from U.S regulators. ETH is becoming globally accepted product money.”.
CME listing will be a catalyst for Ethereum.
Scientists at the CoinMetrics group stated in a note that they think CMEs ETH futures launch could speed up inflows of ETH into the Grayscale Ethereum Trust (ETHE).
This would likely cause both the short-term and long-term belief around ETH to rapidly enhance if the institutional cravings for Ethereum rises as an outcome and Grayscale inflows increase. The scientists said:.
” CMEs launch may potentially speed up ETH inflows into Grayscales Ethereum Trust (ETHE)– financiers can buy into the Grayscale Trust while at the same time shorting ETH, remaining market neutral and stealing the ETHE premium. Grayscales Ethereum trust does not presently have a method for withdrawing ETH so it successfully acts as a large token sink for ETH.”.
Experts at Arcane Research found that the ETH futures agreement attained a $30 million daily volume on its first day, which is relatively high.

The rate of Ether (ETH), the native cryptocurrency of Ethereum, accomplished a brand-new all-time high up on Feb. 9, 2021. On Binance, ETH rallied to as high as $1,830 merely hours after it started to trade on CME.