Spot ether exchange-traded funds are set to begin trading in the US this year, causing investors to anticipate increased volatility in ether compared to bitcoin.
Since April, the 30-day implied volatility index for ether (ETH DVOL) has risen in comparison to bitcoin (BTC DVOL), with a spread of 17%. This suggests that investors are expecting larger price swings for ether.
As of June 19, Ethereum is priced at $3,525.26, showing a 15.5% increase over the last 30 days. It experienced a 7-day change of +0.8% and a 24-hour change of +3.2%. Ethereum started the year at around $2,350, peaked at $4,000 on March 11, and has been fluctuating between $3,700 and $3,450 recently.
Bitcoin ETFs, launched in January, have attracted nearly $15 billion in investments. This initially boosted BTC’s price, but the rally has slowed down as most of the inflows are attributed to arbitrage strategies rather than bullish bets.
Ether’s term structure indicates higher expected volatility across all time frames compared to bitcoin. However, open interest in ether futures on the Chicago Mercantile Exchange is significantly lower than bitcoin futures, with $1.6 billion versus almost $10 billion, suggesting that ether has not reached the same level of institutional acceptance as bitcoin.
JPMorgan estimates that ether ETFs may only attract $3 billion in net inflows this year. The introduction of spot ether ETFs is expected to heighten market volatility for ether, but the actual response from investors remains to be seen.
Overall, the market is anticipating increased volatility in ether with the introduction of spot ether ETFs. Stay updated with Coinpedia for more information on ether ETFs and market trends.