Ethereum Reminds Me of Bitcoin as the Big Day Approaches: What's the Difference?

Spot exchange-traded funds (ETFs) could produce a similar or even better outcome for Ethereum than for Bitcoin.

The 30-day skew on Ethereum options contracts stands at around 3%. This shows that investors are willing to pay more for call options compared to put options. Similarly, six-month Ethereum call options are also more expensive than put options.

Reminds me of Bitcoin ETFs

Experts expect spot Ethereum ETFs to be approved in mid-July. Current data in the Ethereum market is reminiscent of Bitcoin data before Bitcoin ETFs were approved.

“The setup of ETH ETFs could have a much more tangible impact on ETH as it would bring in a new wave of investors,” IntoTheBlock analysts said.

According to analysts, money flowing into Ethereum ETFs at the same rate as money flowing into Bitcoin ETFs could affect Ethereum much more than it affects Bitcoin.

Investors were not enthusiastic

It is likely that Ethereum ETFs will be a new "sell the news" case and the price will drop once they enter the market. However, investors are not as enthusiastic about Ethereum ETFs as they are about Bitcoin ETFs. This may reduce the possibility of “sell the news.”

“Pervasive market pessimism is laying the foundations for better performance,” said Ilan Solot, senior global markets strategist at Marex Solutions. “The same goes for the sell the news strategy, many will try to repeat what happened with the BTC ETF,” he said.