Can Ethereum outshine Bitcoin after ETF debut?

Market dynamics are shifting as the launch of Ethereum’s ETF approaches, with a recent report indicating a growing preference for Ethereum over Bitcoin. The report highlights changes in spot trading volume, options, futures, and perpetual contracts.

Cryptocurrency markets have seen significant fluctuations in recent months, with a notable shift in investor sentiment following the approval of Ethereum spot ETFs by the SEC in May. As anticipation builds for the launch of ETH spot ETFs, investors are becoming more bullish.

While ETH ETFs are yet to commence trading, reports from Kaiko and Block Scholes and Bybit suggest a changing landscape in market preferences. According to the Block Scholes and Bybit report, there has been a substantial shift in spot trading volumes, futures, options, and perpetual contracts.

Ethereum has shown a higher volatility premium over Bitcoin, attributed to increased address activity and a positive market sentiment towards ETH. The ETH to BTC ratio has been consistently positive since the approval of spot ETFs, indicating that Ethereum is likely to outperform Bitcoin when ETF trading begins.

The report also indicates that ETH has outperformed BTC in various aspects since the approval of ETH spot ETFs in May. Despite the overall market volatility, ETH futures have demonstrated more resilience and quicker recovery compared to Bitcoin’s open interest, reflecting a rising positive sentiment and investor confidence in Ethereum’s future.

ETH’s trading volume has remained stable since May, with sustained liquidity and improved depth following the SEC’s approval of ETFs. ETH perpetual contracts have seen increased trading volume, indicating investor confidence in the future potential of cryptocurrencies.

Implied volatility for ETH options has surged over the past week, further showcasing optimism among investors. The market sentiment suggests a positive outlook for ETH, particularly with the upcoming ETF launches.

In conclusion, the market is witnessing a favorable shift towards Ethereum as the launch of its ETF nears, indicating growing optimism and confidence among investors in Ethereum’s potential to outperform Bitcoin in the near future.