Investors’ Risk Appetite Wanes as Grayscale Victory Optimism Fades: Glassnode
The initial optimism surrounding Grayscale’s victory over the SEC has diminished, leading investors to become more cautious, according to analytics firm Glassnode.
SEC to Reconsider Grayscale’s Bitcoin Trust ETF Application
A federal judge has ruled that the SEC must reconsider Grayscale’s application to launch a Bitcoin Trust-based exchange-traded fund (ETF).
Ethereum Derivatives Pricing Provides Market Sentiment Clues
Glassnode’s latest report reveals that the way Ethereum (ETH) is priced in derivatives markets offers insights into market sentiment, indicating that the excitement over Grayscale’s victory is insufficient to sustain prices.
Investors Seek Higher Risk Placements
Glassnode suggests that the relatively low volume of Ethereum’s derivative markets indicates that investors are seeking riskier investment opportunities.
Ethereum Options Volume on the Rise
Since the beginning of the year, Ethereum options markets have seen a significant increase in volume, rising by +256% to $326 million per day. On the other hand, futures volumes have steadily declined, dropping from $20 billion per day in January to just $8 billion per day currently.
Continued Movement of Liquidity up the Risk Curve
Despite no significant changes in trade volumes for both markets in August, traders are still moving liquidity towards riskier assets, according to Glassnode.
Hot Take: Crypto Investors Exercise Caution Following Grayscale Victory
The fading optimism surrounding Grayscale’s victory over the SEC has led to increased caution among crypto investors, as indicated by Glassnode’s analysis. This suggests that market participants are becoming more discerning and mindful of risk as they navigate the evolving crypto landscape.
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