Ethereum Spot ETFs Imminent; Short-Term Option Implied Volatility Widens

IconCryptoNewsTerminal Staff16 Jul, 2024

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Ethereum Spot ETFs Imminent; Short-Term Option Implied Volatility Widens

Investors are moving into options markets to hedge their positions ahead of the impending launch of a U.S. exchange-traded fund (ETF) tracking the price of ether (ETH), according to a report from on-chain analytics firm Kaiko. The report noted that "ETH options implied volatility (IV) has picked up notably." Notably, the increase in IV has been most pronounced for shorter-dated options, with IV for options expiring on July 19 rising from 53% on Saturday to 62% on Monday, surpassing the IV for options expiring on July 26. This suggests growing demand for options and derivatives as investors seek to manage risk ahead of the ETF launch.

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