The monthly trading volume of options on ether futures at the Chicago Mercantile Exchange (CME) has reached an unprecedented level this May. According to data from The Block's Data Dashboard, the volume soared to $1.26 billion with two days remaining in the month. This marks a significant jump from April's volume of $615.75 million, setting a new record for the CME.

A recent market update from Wintermute highlighted that the amount of outstanding ether futures contracts on the CME is also approaching its highest-ever level. This surge in open interest suggests growing institutional interest in ether, particularly in comparison to bitcoin, as the launch of spot ether ETFs looms.

"Ether's CME open interest is nearing all-time highs, indicating institutional interest in the ETH/BTC trade ahead of S-1 filings and an eventual launch," Wintermute analysts noted.

Wintermute's report also pointed out a notable increase in ether's implied volatility. Implied volatility, which gauges market expectations for future price fluctuations based on options prices, has seen significant spikes across various time frames, including 1-week, 1-month, 3-month, and 6-month at-the-money (ATM) implied volatilities. This surge in volatility is tied to heightened market expectations for substantial price movements.

Despite the record trading volumes and increased open interest, ether's price has seen a recent dip. Over the past 24 hours, ether's price decreased by over 2.2%, trading at $3,804 as of 7:56 a.m. ET, according to The Block’s Price Page. Meanwhile, the GM 30 Index, which tracks a selection of the top 30 cryptocurrencies, fell by 1% to 145.18 in the same period.

The increase in trading volume and open interest at CME underscores the rising institutional appetite for ether futures options, particularly in light of upcoming regulatory developments and the anticipated launch of spot ether ETFs. This growing interest and activity signal a robust and maturing market for ether, positioning it as a strong competitor to bitcoin in the cryptocurrency derivatives space.