Corporates Are Careful This Time: How to Protect If Ethereum Falls Revealed!

Ahead of Ethereum ETFs expected to be launched soon, investors are increasing their hedging activities in the options market against price fluctuations.

Spot Ethereum exchange-traded funds (ETFs), which are expected to begin trading in the US soon, direct investors to the options market to protect their current market positions against price fluctuations.

In recent days, hedging activities in short-term contracts seem to be more evident. In particular, the implied volatility of contracts expiring on July 19 increased from 53% to 62%, exceeding the implied volatility of contracts expiring on July 26.

Analysts at data platform Kaiko note that this shows that traders are willing to pay more to maintain their current positions and hedge against sharp price movements in the short term.

It is stated that the mobility in Ethereum is higher than in Bitcoin. According to another data platform, Amberdata, the difference between crypto derivatives exchange Deribit's 30-day Ethereum and Bitcoin volatility indices has been around 10% since the end of May.

Cryptocurrency exchange Bybit and research firm BlockScholes emphasized that investors' optimism for Ethereum is increasing, and this is due to the upcoming launch of ETFs. Additionally, investors are taking into account the "sell the truth" strategy that followed the debut of the Bitcoin ETF on January 11. It was stated that Ethereum may be preparing for a similar price fluctuation.