With the recent shift in market sentiment, it is evident that options traders are now anticipating more significant price movements for Bitcoin in comparison to Ethereum. This shift in focus towards BTC over ETH in the short term signifies a notable trend within the crypto industry.
Recently, the trading of Ethereum spot ETFs commenced amid high anticipation. However, the market did not experience the expected volatility as initially projected.
QCP Capital analysts have pointed out that Bitcoin options currently exhibit higher implied volatility than ETH options. This observation indicates that investors are foreseeing additional price movement for BTC in the near future. According to QCP Capital, “Ethereum volatility has diminished across term structures, and the premium of ETH’s BTC vols on the front end has finally reversed, with BTC 1-week and 2-week options trading 1 to 3 points higher than ETH.”
Following the launch of the much-anticipated spot Ethereum ETFs, there were net inflows exceeding $107 million on the first day of trading. However, this figure pales in comparison to the net inflow of $655 million on the debut day of spot Bitcoin ETFs. The decreased capital influx into Ethereum ETFs can be attributed to a $484 million outflow from Grayscale’s converted Grayscale Ethereum Trust (ETHE) on launch day.
Despite these developments, QCP Capital analysts remain optimistic about the future of ETH in the medium and long term. With Bitcoin hitting an all-time high just two months after the ETF launch, there is a hopeful precedent for Ethereum. It is anticipated that institutional interest will persist, potentially propelling Ethereum’s price towards its previous peak.
*This content serves for informational purposes and should not be considered as investment advice.
