Ethereum Options Open Interest Now Dominated by Call Options

Call options are dominating ETH open interest as investors position themselves for a potential surge in institutional demand for Spot ETFs, analysts noted.

Ether spot ETFs were approved by the U.S. Securities and Exchange Commission last Thursday, but unlike bitcoin ETFs, which began trading the day after approval, the ETFs may of ether will not come online for a few weeks or months.

In light of the recent approvals, analysts at QCP Capital expressed a positive structural outlook for ether, noting that the largest increases in ether options open interest in the last 24 hours occurred primarily in calls.

This observation aligns with data from derivatives exchange Deribit, which shows that the ether put/call ratio for all maturities is now 0.56. A call to put ratio below one indicates that the buying volume exceeds the selling volume, signifying bullish sentiment in the market.

The analysts added that the implied volatility of short-term ether call options is higher than that of put options, a situation that indicates that the market is anticipating an upward price movement or increased demand for calls in relation to put options.

"Initial Ether volumes could remain 15-20 vols above Bitcoin, and Ethereum's bias is likely to remain in favor of calls," QCP Capital analysts added.

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