Options traders now expect greater price volatility in Bitcoin compared to Ether, indicating that short-term market sentiment may be shifting in favor of Bitcoin.
After the highly anticipated Ethereum spot exchange listed fund (ETF) trading (ETF) launched on Tuesday, but the expected market surge did not materialize. Over the past 24 hours, Ethereum Ethereum
-1.51%
As of this writing, it is down 1.4% and is currently trading at $3,455. The pricing page of the block.
QCP Capital analysts observed that Bitcoin options now have higher implied volatility than Ether options, meaning that greater price volatility for BTC is expected in the short term. “Ethereum volatility has been sold off across the term structure, and Ether’s premium over Bitcoin volatility on the front end has finally reversed, with Bitcoin 1-week and 2-week options now trading 1-3 points higher than Ether,” the QCP Capital analysts said.
Ethereum ETF underperforms Bitcoin ETF on first day
The newly launched, highly anticipated Ethereum exchange-traded fund (ETF) saw its first day of spot trading see net inflows exceed $107 million.
This was a significant underperformance compared to the $655 million in net inflows on the first day of trading for spot Bitcoin exchange-traded funds (ETFs). One factor behind the reduced inflows into Ethereum ETFs was the $484 million outflows from Grayscale’s converted Grayscale Ethereum Trust (ETHE) on the first day of trading.
However, QCP Capital analysts maintain a positive outlook for ETH in the medium to long term. “Bitcoin’s all-time high just two months after the launch of the ETF provides a compelling precedent. As we anticipate continued institutional interest, ETH’s price trajectory could gradually converge with its previous all-time high,” the QCP Capital analysts added.
Ethereum ETF inflows likely to increase gradually
“If positive spot Ethereum ETF activity continues over the next few days, Ethereum could compensate for the post-launch Ethereum selloff and head higher,” Fournier said.
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