Bitcoin
Investors are more bullish on Ethereum than Bitcoin
A recent report reveals a significant bifurcation in investor sentiment between Ethereum (ETH) and Bitcoin (BTC).
Bybit, the world’s second largest cryptocurrency exchange by trading volume, Published its latest Crypto Derivatives Analysis Report in collaboration with BlockScholes.
According to this report, market trends and trading signals in spot, futures, options and perpetual contracts trading volume show growth bullish sentiment towards ETH.
Investors are bullish on ETH due to the imminent launch of the first Ether Spot ETFs in the United States. This optimism is reflected in ETH’s sustained volatility premium over BTC, even amid recent market activity and sell-off.
Study results
Despite the recent market dip, ETH futures have recovered in open interest faster than BTC. This indicates a robust market narrative around ETH and its outlook. Furthermore, higher trading volumes in ETH perpetual contracts suggest substantial long positions driven by strategic positioning ahead of market developments.
During the recent cryptocurrency sell-off, there was a surge in perpetual swap trading volume, with many traders closing their long positions.
“The higher trading volume activity in ETH suggests that traders were caught in long positions to a greater extent, possibly due to positioning ahead of the expected start date of trading of the ETF,” the report said.
Furthermore, ETH options market volatility remains high, particularly in anticipation of the ETF approval, contrasting with the more defensive stance of BTC options.
According to the report, ETH options have a 10–15 point premium in volatility compared to BTC at all tenor points in the term structure. Furthermore, ETH has recovered its volatility bias towards out-of-the-money (OTM) calls much faster than BTC.
There was also significant trading volume in ETH calls, far outweighing the activity in puts.
Eugene Cheung, Head of Institutions at Bybit, commented: “The latest data underscores ETH’s resilience and market appeal as we approach important regulatory milestones. Investors are demonstrably positioning themselves favorably amid rising market expectations.”