Ethereum
Traders Put $20 Million Into Ethereum Bets As ETF Launch Looms — Here’s Where They See Price Heading – DL News
- Ethereum ETFs are expected to launch next Tuesday.
- Ether is expected to reach new highs later this year.
Traders have placed $20 million on bullish bets suggesting Ether will rally following the launch of Ethereum spot exchange-traded funds, while others expect the cryptocurrency to hit new record highs later this year.
Transactions — puts and calls on options expiring on July 26 compiled by tracker based on money — as market watchers expect Ethereum spot ETFs to launch on July 23.
“It seems that the majority of traders see the ETF as a catalyst for upward price action,” said Bartosz Lipinski, CEO of cryptocurrency exchange Cube.Exchange. DL News.
Market watchers are hoping that spot Ethereum ETFs can replicate the success of similar Bitcoin funds launched in January and catapulted the cryptocurrency to a new all-time high in March.
Ether is trading 30% below its all-time high of $4,878.
Bullish Paris
Traders invested $20 million in bets that paid off when the price rose.
Of the 467,220 bets placed on the Deribit trading platform, about 7% are for payouts when the price hits $4,000, making it the largest position for the July 26 expiry.
More than 31% of trades expiring on July 26th are worth between $4,100 and $6,000.
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However, “a significant amount” of nearly 5% of the trades were made at the $3,000 strike price, he added.
This shows “that a decent minority of traders are taking a contrarian stance that ETH could fall in its early stages,” Lipinski said.
He suggested that these trades represent a hedge against the same sell-off that occurred shortly after the launch of the Bitcoin spot ETFs.
Lipinski added that bullish bets, or calls, are outweighing bearish bets, or puts, “virtually every expiration,” suggesting the market is optimistic about the price of Ether in the months ahead.
“The more we look ahead, the more bullish sentiment grows,” Lipinski said.
The number of open contracts for paid bets on December 27 for prices of $5,000 and $6,000 is “well above any other level, and tells me that the market believes ETH could reach a new high by the end of the year,” he added.
Cryptocurrency Market Players
- Bitcoin is down 1.8% over the past 24 hours to trade at $63,913.
- Ethereum is down 0.9% at $3,409.
What we read
Eric Johansson is editor-in-chief of DL News. Got a tip? Email us at eric@dlnews.com.