Ethereum
Investors are more bullish on Ethereum than Bitcoin
A recent report reveals a significant divergence in investor sentiment between Ethereum (ETH) and Bitcoin (Bitcoin).
Bybit, the world’s second-largest cryptocurrency exchange by trading volume, published its latest analysis report on crypto derivatives in collaboration with BlockScholes.
According to the report, market trends and trading signals on 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 ETF Ether Spot 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 crash, ETH futures have recovered their open interest faster than BTC. This indicates a strong market narrative around ETH and its prospects. Furthermore, higher trading volumes on ETH perpetual contracts suggest substantial long positions driven by strategic positioning ahead of market developments.
During the recent cryptocurrency sell-off, perpetual swap trading volume increased as many traders closed out their long positions.
“The higher trading volume in ETH suggests that traders were caught in larger long positions, possibly due to positioning ahead of the ETF’s scheduled trading start date,” the report reads.
Additionally, volatility in the ETH options market remains high, especially in anticipation of ETF approval, contrasting with the more defensive stance of BTC options.
According to the report, ETH options have a 10-15 point volatility premium over BTC across all duration points of the futures structure. Additionally, ETH has recovered its volatility bias toward out-of-the-money (OTM) call options much faster than BTC.
ETH call trading volume was also strong, far outpacing its put activity.
Eugene Cheung, Head of Institutions at Bybit, commented: “The latest data underscores the resilience and attractiveness of the ETH market as it approaches key regulatory milestones. Investors are clearly positioning themselves favorably amid rising market expectations.”