Ether Call Options Concentrated at $2,550 Ahead of Expiry
Ether active options data reveals that the majority of outstanding contracts are calls with a strike price of $2,550, set to expire on January 19. Over 24,600 contracts with a notional value of over $62 million are currently outstanding for these calls, according to Deribit data.
A call option in options trading gives the holder the right, but not the obligation, to buy the underlying asset at a specified price before or on the expiration date.
Ethereum Spot ETF Anticipations
Although ether’s price has fallen by almost 1% in the past 24 hours to trade at $2,516, it has still outperformed bitcoin in the week following the approval of multiple spot bitcoin ETFs by the U.S. Securities and Exchange Commission. Bitcoin’s value has dropped by around 10% in the past week, while ether’s price has declined by just over 5%. QCP Capital’s Market Update from Wednesday indicates that the ETH/BTC exchange rate has risen from 0.05 to 0.06 over the same time frame. Analysts at QCP Capital also expect ether to continue outperforming bitcoin as market focus shifts to the potential approval of spot ether ETFs.
Luke Nolan, CoinShares Ethereum Research Associate, sets the probability of spot ether ETFs being approved in 2024 at 70%. However, he believes that it is unlikely to happen before then and that Q4 2024 would be the earliest time for approval. Ruslan Lienkha, Chief of Markets at YouHodler, identifies obstacles that could hinder spot ether ETF approvals this year. Despite this, he expects ETH to continue correlating with BTC and potentially outperforming it due to speculative sentiment surrounding ETF approvals.
Hot Take: The Outlook for Ether Options and Spot ETFs
Ether options data suggests that traders are optimistic about the price of ether surpassing $2,550 by the mid-January expiration date. However, the current price of ether has fallen slightly in the past 24 hours. Meanwhile, the approval of spot bitcoin ETFs by the SEC has had a positive impact on ether’s performance compared to bitcoin. QCP Capital analysts predict that this trend will continue as attention shifts to the potential approval of spot ether ETFs. While some experts believe that spot ether ETFs may not be approved until 2024, there is still excitement in the market about their potential approval in the near future.
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