Amid renewed optimism about the approval of a potential spot Ether exchange-traded fund, Ether call options are more expensive than put options on all expirations, indicating bullish market sentiment, one analyst said.
Deribit CEO Luuk Strijers said: “Put minus call skew is a very bullish sign, being negative across all maturity periods and increasing further after the end-June expiration. Basis is also up about 14% on a year-to-date basis, which is another bullish indicator. “He said. An email was sent to The Block.
Our analysis shows that traders are willing to pay more for call options than put options, especially those expiring at the end of June and beyond. This can be a bullish market indicator because it indicates that traders expect the price of Ether to rise in the future. As a result, they are less inclined to pay a higher premium for the downside protection of a put option.
Option trading volume surges
According to Strijers, the Deribit derivatives exchange experienced almost unprecedented trading volume this week following a surprise amendment request from the U.S. Securities and Exchange Commission that reignited optimism about the potential approval of a spot ether ETF.
“At Deribit, we have seen a notable increase in trading volume and volatility for Ethereum options and futures, in fact hitting an almost unprecedented notional volume of $12.5 billion in the last 24 hours,” Strijers said.
The Deribit CEO added that the surge reflects increased market activity and interest as traders and investors position themselves to take advantage of the potential approval of a spot Ether ETF this week.
SEC Request for Modification of ETF Submissions
The bullish reversal in the ether options market began on Monday, when companies seeking to list and trade shares of spot ether ETFs were asked by the SEC to update and refile important documents.
On Tuesday, CboeBZX Franklin Templeton, Fidelity, VanEck, Invesco Galaxy, Ark Invest, and 21Shares have posted revised Form 19b-4s for their spot ether ETFs.
According to The Block’s pricing page, the price of Ether is up 1% over the past 24 hours, trading at $3,740 at 6:14 a.m. ET.
The GM 30 Index, which represents the top 30 cryptocurrencies, rose 0.5% to 148.14 during the same period.
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