Investor Sentiment Forks Between Ethereum (ETH) and Bitcoin (BTC) – Bybit Report Highlights

Investor sentiment towards Ethereum (ETH) and Bitcoin (BTC) is diverging, according to a recent report by Bybit, the world’s second-largest cryptocurrency exchange. The report, conducted in collaboration with BlockScholes, highlights a growing bullish sentiment towards ETH, driven by optimism surrounding the imminent launch of the first Ether Spot ETFs in the United States.

Despite a recent market slump, ETH futures have rebounded in open interest faster than BTC, indicating a strong market narrative around ETH. Higher trading volumes in ETH perpetual contracts suggest significant long positions being taken by investors ahead of market developments.

During a recent crypto sell-off, there was a surge in trade volume for ETH perpetual swaps, with many traders closing their long positions. This 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, particularly 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, with significant trading volume in ETH calls surpassing activity in puts.

Eugene Cheung, Bybit’s Head of Institutions, commented on the report, 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.”

Overall, the report reveals a significant divergence in investor sentiment between ETH and BTC, with investors showing a growing bullish outlook towards ETH driven by market developments and regulatory milestones.