According to a story by The Financial Times, hedge funds are in a betting frenzy as managers buy options on ether tokens, Ethereum's flagship token, due to the blockchain's conversion from proof of work to proof of stake, often known as "The Merge."
The changeover means that transactions on the Etheruem blockchain are now confirmed by a keener, more environmentally friendly system. The switch finally took effect on Thursday morning after a six-year build-up. Some traders predict that proof of stake will reduce Ethereum's energy consumption by as much as 99% and make ether tokens more accessible to institutional investors.
Many trades have been made on the options market, where there are now more than 4.6 million open contracts on exchange Deribit, which represents 97 percent of the ether options. There were 12 million open contracts at the beginning of the year. Around 80% of these reportedly calls options, which are bets on higher prices, with the remaining 20% put options, which are bets on lower prices.
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