Home Markets ETH overthrows BTC in the options market for the first time

ETH overthrows BTC in the options market for the first time

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

What happened: According to data from glass knotat press time, the cumulative value of open interest on ETH contracts on the dominant crypto derivatives exchange deribitate stood at $5.6 billion, surpassing the $4.3 billion in open interest for BTC.

Deribit accounts for over 90% of global crypto exchange volume and open interest.

The majority of ETH options were call options, as 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 ETH betting comes as the merger nears, signifying the blockchain’s transition to proof-of-stake which will bring a host of changes, including a reduction in net ETH issuance.

Deribit Insights noted that the implied volatility at parity (ATM) for ETH has increased more significantly than the implied volatility for BTC.

“ATM volatility levels implied by BTC options increased similarly to those of ETH during the two peaks in May and June, but only increased by 10 percentage points in volume following each crash, unlike ETH’s two 20 vol points. steps,” Deribit wrote.

“This resulted in a three-month trend of ETH ATM theft outperforming that of BTC, an event somewhat to be expected given the former’s larger decline from November’s all-time highs.”

Price Action: According to data from BenzingaPro, 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.

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