Analysis: ETH Not Expected to Outperform BTC Amidst ETF Speculation

IconCryptoNewsTerminal Staff24 Jul, 2024

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Analysis: ETH Not Expected to Outperform BTC Amidst ETF Speculation

Traders in the crypto options market predict that Ethereum (ETH) will not outperform Bitcoin (BTC) in the coming months. This sentiment is based on the higher premiums of BTC call options as compared to ETH call options, indicating expectations of stronger performance from BTC. According to Amberdata, the market has factored in potential benefits from a spot ETH exchange-traded fund (ETF). However, due to the likelihood of limited capital inflow into an ETH ETF compared to a BTC ETF, traders remain more bullish on BTC. Pankaj Balani, CEO of Delta Exchange, stated, "The market has already priced in the potential tailwinds from a spot ETH ETF and also because there is likely to be less capital flowing into an ETH ETF relative to a BTC ETF." This analysis highlights the continued dominance of BTC in the crypto market, with investors anticipating it to lead the charge in the short term.

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