The Crypto Derivatives Market Hints at Excitement for Potential Ethereum ETF Approval
The crypto derivatives market is indicating continued excitement about the potential approval of a spot Ethereum (ETH) ETF by the end of May, according to an analyst. Traders are adjusting their ether options contracts with the May 23 deadline in mind. The final approval decision for spot ether ETF applications is set for May 23, submitted by asset managers VanEck and Ark/21Shares to the U.S. Securities and Exchange Commission.
Increased Call Side Open Interest for Long-Dated Options
Bitfinex Head of Derivatives Jag Kooner noted a significant increase in call side open interest for long-dated options for March, April, and May. The put-call ratio is currently skewed towards the longs at 0.31, suggesting bullish sentiment in the market. The Block’s Data Dashboard also supports this observation, interpreting the put-call options ratio as a bullish indicator for the future market price of ether.
Conflicting Views on Approval Timeline
While there is optimism regarding a spot ether ETF approval, other sources suggest a more cautious approach, predicting that approval may not occur until 2025 or 2026. The classification of ether as a security or commodity plays a significant role in these predictions and influences the derivative market’s response.
Upcoming Ether Options Expiry Dates
Kooner highlighted upcoming expiry dates for ether options. February’s week and month-end expiry dates suggest a max pain price of around $2,300, while the highest open interest by strike price is around $2,400 – $2,450. For long-dated expiry dates in April and beyond, the max pain price increases to around $2,400 with heavy call side bias. However, there is an anomaly in March, with a max pain price of around $2,000 and open interest spread between $2,000 – $3,000.
Hot Take: Ether’s Price Increase and Market Outlook
Ether’s price has increased by over 2% on Wednesday, reaching $2,395. The crypto derivatives market suggests potential excitement surrounding the approval of a spot Ethereum ETF. However, conflicting views exist regarding the approval timeline, with some predicting it may not happen until 2025 or 2026. The upcoming expiry dates for ether options indicate varying sentiments in the market, with both bullish and cautious approaches observed. As the market awaits the final decision on spot ether ETF applications, the future of Ethereum remains uncertain but filled with anticipation.
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