Investor Sentiment Forks Between Ethereum (ETH) and Bitcoin (BTC): Bybit Report Highlights Bullish Trends
Investor Sentiment Shifts Towards Ethereum (ETH) Over Bitcoin (BTC)
A recent report from Bybit, the world’s second-largest cryptocurrency exchange, in collaboration with BlockScholes, has revealed a significant shift in investor sentiment between Ethereum (ETH) and Bitcoin (BTC).
The report highlights a growing bullish sentiment towards ETH, driven by market trends and trading signals across spot trading volume, futures, options, and perpetual contracts. Investors are particularly optimistic about ETH due to the imminent launch of the first Ether Spot ETFs in the United States.
Despite the recent market slump, ETH futures have shown a quicker recovery in open interest compared to BTC, indicating a strong market narrative around ETH and its future prospects. Higher trading volumes in ETH perpetual contracts also suggest substantial long positions being taken by investors strategically positioning themselves ahead of market developments.
During the recent crypto sell-off, there was a surge in trade volume for perpetual swaps, with many traders closing their long positions. The report suggests that traders were caught in long positions in greater magnitude, possibly due to positioning ahead of the expected ETF start-of-trading date.
ETH options market volatility remains high, especially in anticipation of ETF approval, contrasting with BTC options’ more defensive stance. ETH options have a 10–15 point premium in volatility compared to BTC across all tenor points on the term structure. Additionally, ETH has recovered its volatility smile skew toward out-of-the-money (OTM) calls much faster than BTC.
Eugene Cheung, Bybit’s Head of Institutions, commented on the findings, stating, “The latest data underscores ETH’s resilience and market appeal as we approach key regulatory milestones. Investors are demonstrably positioning themselves favorably amidst growing market expectations.”
The report indicates a clear forking in investor sentiment between ETH and BTC, with ETH emerging as the preferred choice for many investors due to its resilience and market appeal in the face of regulatory milestones and market developments.
