Ethereum leveraged ETFs launch as options-implied volatility exceeds Bitcoin
Volatility Shares leveraged Ethereum ETFs launched.
Ethereum options implied volatility exceeds Bitcoin as investors await spot ETH ETFs.
After spot ETH ETFs launch, Ethereum may reach $5,000 for the first time.
After Volatility Shares leveraged ETH ETFs launched and implied volatility across ETH options increased, Ethereum (ETH) continued its sideways trend on Tuesday.
Ethereum outperformed Bitcoin in a derivatives metric Tuesday.
Eleanor Terrett of Fox Business revealed that the 2x Ether ETF (ETHU) started on Tuesday after SEC approval. The first leveraged Ethereum ETF in the US will track twice futures ETH prices.
"Like our 2x Bitcoin ETF (BITX), ETHU may pave the way for 1x spot ETFs in the near future," stated cofounder Stuart Barton to Eleanor Terrett.
In June 2023, Volatility Shares launched a Bitcoin 2x fund and became one of the largest CME holders of Bitcoin futures contracts. ETHU's launch has led many to believe the SEC will approve spot ETH ETF S-1 registration statements in the coming weeks.
QCP Capital reports that Ether options have greater implied volatility compared to Bitcoin due to investor optimism over spot ETH ETFs.
Implied volatility shows how much the market anticipates an option's price to move over time.
Ethereum on-chain and derivatives data is optimistic after issuers update ETH ETF S-1s.
"While waiting for the ETH spot ETF to boost demand, the market will likely remain optimistic. QCP researchers say ETH vols are 15% higher than BTC vols in the options market.
Ethereum traded at $3,796 on Tuesday, extending its horizontal trend. The consolidation has reduced ETH liquidations to $6.33 million long and $4.08 million short.
Since derivatives data is bullish, ETH is unlikely to fall. If prices drop, $3,618 may be essential.
ETH may break $4,093 barrier in its next significant move. If the SEC approves spot ETH ETFs, ETH may climb to a new all-time high of $5,000 due to its consolidation.
#ETHETFsApproved #ETH $ETH #btc70k
