A recent report from Bybit, the world’s second-largest cryptocurrency exchange, shows a notable divergence in investor sentiment between Ethereum (ETH) and Bitcoin (BTC). Market trends and trading signals reveal a growing bullish attitude towards ETH, driven in part by the upcoming launch of the first Ether Spot ETFs in the US. Despite recent market fluctuations, ETH has maintained a volatility premium over BTC.
ETH futures have rebounded in open interest faster than BTC after a recent market slump, indicating a strong market narrative around ETH. Higher trading volumes in ETH perpetual contracts suggest a significant number of long positions being established ahead of market developments. During a recent sell-off, there was a surge in trade volume for perpetual swaps, with many traders closing their long positions.
ETH options market volatility remains high, particularly in anticipation of ETF approval, in contrast to BTC options’ more defensive stance. ETH options have a 10–15 point premium in volatility compared to BTC across all tenor points on the term structure. Additionally, ETH has regained its volatility skew toward out-of-the-money calls faster than BTC. Trading volume in ETH calls has far exceeded activity in puts.
Bybit’s Head of Institutions, Eugene Cheung, noted that the data highlights ETH’s resilience and market appeal as key regulatory milestones approach. Investors are positioning themselves favorably amidst growing market expectations.