Ethereum options on the Deribit platform anticipate a positive response in the spot price following the commencement of trading in exchange-traded funds based on the second-largest cryptocurrency by market capitalization, reports CoinDesk.
The day before, the SEC registered S-1 applications for spot Ethereum ETFs. Access to these products will be available from July 23.
According to Amberdata, call options with short and long expiration dates are trading at a volatility premium compared to puts. Such preferences contrast with concerns of a “sell the fact” scenario following the ETH-ETF launch.
Earlier, Valentin Fournier from BRN predicted a push in Ethereum’s price to the $2800–3100 range after the ETF trading begins, followed by a rise to $4000 as the effect of inflows into the instruments manifests.
Founder of 10x Research, Markus Thielen, expressed a similar view, noting preparations for profit-taking ahead of the exchange-traded funds’ launch.
The publication suggested that the higher demand for calls might be explained by low expectations regarding potential inflows into the product. Most experts believe that investors will allocate only a small portion of what they invest in BTC-ETFs to ETH-ETFs.
Journalists also noted that Ethereum did not show significant growth leading up to the event, unlike the digital gold’s price in similar circumstances.
Bitcoin Options
The bitcoin options market is witnessing increased interest in out-of-the-money contracts in anticipation of a sharp rise following a speech by U.S. Republican presidential candidate Donald Trump, writes The Block.
According to Deribit, the monthly implied volatility has risen from 53% to 67% over the past week.
“There are speculations that he might announce the creation of a strategic bitcoin reserve in the U.S. Such an announcement could serve as a significant catalyst, potentially pushing the price to ATH,” commented Fournier.
The specialist also highlighted increased expectations of an imminent rate cut by the Fed.
Previously, “Rich Dad Poor Dad” author and entrepreneur Robert Kiyosaki predicted a rise in digital gold’s price following a Trump victory.
On July 22, inflows into spot bitcoin ETFs amounted to $533.57 million. Such high levels were last observed on June 4.