Ethereum's ether (ETH) has seen a resurgence in interest among traders, as indicated by recent data showing a significant increase in its implied volatility compared to Bitcoin (BTC). TradingView data reveals that the spread between the 30-day ether implied volatility index (EVIV) and Bitcoin's equivalent index (BVIV) has surged to 34%, marking the highest levels since the FTX exchange's collapse in November 2022, a period that had resulted in massive losses for investors.
In recent trading activity, ether's price has jumped 8% to $2,728, outperforming Bitcoin, which only saw a 1% increase during the same period. This uptick in ether’s price is attributed to renewed interest from institutional investors, with Ethereum ETFs reportedly attracting $812 million in the past two weeks, a noteworthy boost compared to the less than $400 million raised by Bitcoin ETFs in the same timeframe.
Alex Kuptsikevich, chief market analyst at FxPro, noted, "Ethereum is pumping up with new money. Over the past two weeks, Ethereum ETFs have attracted $812 million, the biggest amount since the beginning of this year." This fresh capital inflow seems to signal a shift in market sentiment, potentially positioning ether for further gains.
Several market analysts, including the Singapore-based trading firm QCP, comment on the favorable conditions that have emerged for ether. According to QCP, institutional factors such as the advancing GENIUS Act in the U.S. Senate and the continued discussion around Circle's IPO, along with regulatory shifts for stablecoins, may contribute positively to Ethereum's role in the crypto ecosystem.
Data from the options exchange Deribit further reflects this bias, showing that ETH call options are trading at a higher premium—between 2% and 3%—relative to puts, compared to BTC calls, which are trading at a smaller premium of 0.5% to 1.5%. Analytics firm Block Scholes notes robust trading activity in ETH options, with 30-day call-skew reaching 6.24%, indicating traders are willing to pay more for potential upside in ether than Bitcoin.
In recent trading activity, ether's price has jumped 8% to $2,728, outperforming Bitcoin, which only saw a 1% increase during the same period. This uptick in ether’s price is attributed to renewed interest from institutional investors, with Ethereum ETFs reportedly attracting $812 million in the past two weeks, a noteworthy boost compared to the less than $400 million raised by Bitcoin ETFs in the same timeframe.
Alex Kuptsikevich, chief market analyst at FxPro, noted, "Ethereum is pumping up with new money. Over the past two weeks, Ethereum ETFs have attracted $812 million, the biggest amount since the beginning of this year." This fresh capital inflow seems to signal a shift in market sentiment, potentially positioning ether for further gains.
Several market analysts, including the Singapore-based trading firm QCP, comment on the favorable conditions that have emerged for ether. According to QCP, institutional factors such as the advancing GENIUS Act in the U.S. Senate and the continued discussion around Circle's IPO, along with regulatory shifts for stablecoins, may contribute positively to Ethereum's role in the crypto ecosystem.
Data from the options exchange Deribit further reflects this bias, showing that ETH call options are trading at a higher premium—between 2% and 3%—relative to puts, compared to BTC calls, which are trading at a smaller premium of 0.5% to 1.5%. Analytics firm Block Scholes notes robust trading activity in ETH options, with 30-day call-skew reaching 6.24%, indicating traders are willing to pay more for potential upside in ether than Bitcoin.
