The switch of the Ethereum blockchain from proof of work to proof of stake – aka The Merge – has had hedge funds in a betting frenzy with managers scooping up options on ether tokens, Ethereum’s flagship token, according to a report by The Financial Times.
The switch of the Ethereum blockchain from proof of work to proof of stake – aka The Merge – has had hedge funds in a betting frenzy with managers scooping up options on ether tokens, Ethereum’s flagship token, according to a report by The Financial Times.
The switch, which finally completed on Thursday morning after a six-year build up, means that transactions on the Etheruem blockchain are now verified by a keener, more eco-friendly system. Some traders are betting that proof of stake will see the Ethereum’s energy consumption slashed by as much as 99 per cent, opening up ether tokens to mainstream investors.
A lot of the trades have been placed on the options market with outstanding contracts on exchange Deribit, which accounts for 97 per cent of ether options, having risen from 12 million at the beginning of the year to over 4.6 million. About 80 per cent of these are reported to be call options – a bet on a higher price– with remaining 20 per cent puts, or bets on lower prices.
