• Ether futures volumes on CME slipped in August as bitcoin volumes rose.

• Globally, there has been a shift from alternative cryptocurrencies and into Bitcoin.

Exchange-traded funds (ETFs) tied to the ether (ETH) price debuted in the U.S. late July, opening doors for investors seeking exposure to the cryptocurrency while bypassing the hassle of storing it.

Since then, activity in ether derivatives listed on the Chicago Mercantile Exchange (CME) has cooled, according to CCData, a digital assets data provider based in London.

Trading volume in ether futures declined 28.7% to $14.8 billion in August, the lowest since December 2023. Volume in ether options fell 37% to $567 million.

"This decline in trading volumes for ETH instruments suggests lower-than-expected institutional interest in the asset, particularly following the launch of spot ETH ETFs," CCData noted. "The reduced inflows into spot ETH ETFs in August further support this trend. Additionally, seasonality effects in August may have also contributed to the decreased trading activity, with this trend likely to continue into September."

Before the advent of spot ETFs, futures and futures-based ETFs were the only regulated avenues available for traditional stateside institutions. The spot products are generally perceived as superior to futures-based ETFs as the latter are vulnerable to "contango bleed." That said, demand for spot ETFs has not been impressive either.