- Due to Ethereum ETF approval deadlines, ETH Call options are trading at higher premiums.
- Unprecedented trading volume: $12.5 billion notional volume in 24 hours on Deribit exchange.
- Regulatory developments: SEC requests amended filings, fueling optimism for spot ETF approvals.
Amid renewed optimism for potential Ethereum ETF approvals, Ether call options trade at a premium, indicating bullish market sentiment. Explore the latest developments and market signals surrounding this highly anticipated event.
Related: SEC Decision Looms as Ethereum Surges 60% in 2024, Will ETH ETF Finally Get Approved?
Ethereum ETF Approval Causes Frenzy in Options Markets
The ether options market is exhibiting strong bullish signals, according to industry analysts as the deadline for Ethereum ETF approval nears. Ether call options, which grant the right to buy the cryptocurrency at a predetermined price, are trading at higher premiums than put options across all expiration dates. This development indicates traders’ willingness to pay more for potential upside exposure.
“Put minus call skew is negative across all expiries and increasing further beyond the end-of-June expiry, quite a bullish signal — the basis has also increased to around 14% annualized, another bullish indicator,” said Luuk Strijers, CEO of Deribit, a leading crypto derivatives exchange.
The analysis suggests that traders anticipate Ether prices to rise in the future, as they are less inclined to pay higher premiums for downside protection through put options. This sentiment is further amplified for options expiring at the end of June and beyond, coinciding with the potential approval timeline for spot Ether ETFs.
Surge in Options Trading Volume
Deribit has witnessed an unprecedented surge in trading volumes and volatility for ether options and futures contracts. According to Strijers, the exchange recorded a staggering $12.5 billion notional trading volume in the last 24 hours, reflecting heightened market activity and interest as traders position themselves to capitalize on the potential ETF approval.
SEC Requests Amendments to ETF Filings
The bullish turnaround in the ether options market began on Monday when the U.S. Securities and Exchange Commission (SEC) requested firms seeking to list and trade shares of spot ether ETFs to update and refile important documents. On Tuesday, CboeBZX posted the amended 19b-4 forms for spot ether ETFs from prominent firms such as Franklin Templeton, Fidelity, VanEck, Invesco Galaxy, Ark Invest, and 21Shares.
Ether’s price has responded positively to the developments, increasing by 1% in the past 24 hours and trading at around $3,740 at the time of writing.
As the cryptocurrency community eagerly awaits the SEC’s decision, the bullish signals from the options market indicate traders’ growing confidence in the potential approval of spot Ether ETFs, setting the stage for a potential influx of institutional capital and increased mainstream adoption of the world’s second-largest cryptocurrency.
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