• Wed. Aug 17th, 2022

ETH Flips BTC In Options Market For First Time Ever

BySamyuktha Sriram

Aug 2, 2022
ETH Flips BTC In Options Market For First Time Ever

Open interest in Ethereum ETH/USD options exceeded that of Bitcoin BTC/USD for the first time on Monday.

What Happened: According to data from Glassnode, at press time, the cumulative value of open interest on ETH contracts on dominant crypto derivatives exchange Deribit stood at $5.6 billion, outpacing the $4.3 billion in open interest for BTC.

Deribit accounts for more than 90% of global crypto trading volume and open interest.

The majority of ETH options were call options, evidenced by a Put/Call ratio of 0.26. Meanwhile, BTC options had a Put/Call ratio of 0.5.

The largely bullish nature of bets on ETH comes as the Merge looms closer, signifying the blockchain’s transition to Proof-of-Stake that will bring a host of changes, including a reduction in ETH’s net issuance.

Deribit Insights noted that at-the-money (ATM) implied volatility for ETH has spiked more significantly than implied volatility for BTC.


“The levels of ATM volatility implied by BTC options spiked in a similar way to ETH’s during both spikes in May and June, but took a leg up of only 10 vol percentage points in the aftermath of each crash in contrast to ETH’s two 20 vol point steps,” wrote Deribit.

“That has resulted in a three-month-long trend of ETH’s ATM vol outperforming that of BTC, an occurrence somewhat to be expected given the former’s larger downturn from November’s all-time highs.”

Price Action: According to data from Benzinga Pro, at press time, BTC was trading at $22,946, down 1.9% over 24 hours. ETH was trading at $1,594, down 5.85% over the same period.

Image and article originally from www.benzinga.com. Read the original article here.