Massive Bet on $3.2k ETH by August With $1.4 Million Call Option

Massive Bet on $3.2k ETH by August With $1.4 Million Call Option

Ethereum's Rise: A Bullish Call Option Purchase The cryptocurrency market has witnessed a substantial transaction, indicating bullish expectations for Ethereum (ETH). According to Lin Chen, Asia Business Development at Deribit, an anonymous investor has acquired 5,000 ETH-sized call options with an August expiry and a $3,200 strike price. This move involved a premium payment of 1.43 million USD. Speculation Behind the Purchase Market observers speculate that the purchase could be driven by anticipation of approval for an Ethereum spot exchange-traded fund (ETF). Such a development would likely boost ETH's value, leading to potential profits for the investor. Call Option Details The call options purchased by the investor provide the right, but not the obligation, to buy 5,000 ETH at a price of $3,200 on or before August's expiration date. If the ETH price exceeds $3,200 by then, the investor can exercise the option and purchase ETH at the strike price, potentially realizing a profit. Conversely, if the price remains below $3,200, the option expires worthless, resulting in a loss of the premium paid. This substantial call option purchase underscores the growing confidence in Ethereum's long-term price trajectory. The market eagerly awaits further developments, particularly any news regarding the approval of an ETH spot ETF.