Launch of Spot Ether ETFs Anticipated to Boost Volatility

Get ready for increased volatility in the price of ether compared to bitcoin as spot ether exchange-traded funds are set to begin trading in the US this year.

Ether’s 30-day implied volatility index has risen compared to bitcoin since April, currently at 17%, indicating that investors anticipate larger price swings for ether.

As of June 19, Ethereum is priced at $3,525.26, showing a 15.5% increase over the last 30 days, with a 7-day change of +0.8% and a 24-hour change of +3.2%. Despite crossing $4,000 in March, Ethereum has been fluctuating between $3,700 and $3,450 recently.

Bitcoin ETFs, launched in January, have attracted nearly $15 billion from investors, causing BTC’s price to initially surge. However, most ETF inflows are from arbitrage strategies, not outright bullish bets, suggesting a cautious approach may also apply to ether ETFs.

Ether’s term structure indicates higher expected volatility across all time frames compared to bitcoin. Despite this, open interest in ether futures on the Chicago Mercantile Exchange is much lower than in bitcoin futures – $1.6 billion versus almost $10 billion. This suggests that ether has not yet achieved the same level of institutional acceptance as bitcoin. JPMorgan estimates that ether ETFs might only attract $3 billion in net inflows this year.

The launch of spot ether exchange-traded funds is expected to increase market volatility for ether. While there is significant excitement, the actual investor response remains to be seen.

For more updates on ether ETFs and market trends, stay tuned to Coinpedia.