Regarding digital currencies, the U.S. SEC is expected to announce its final decision on VanEck’s ETH Spot ETF on May 23, local time, which has sparked significant interest in the market. The pricing of volatility in the options market reflects this anticipation, as the ATM Vol for ETH 24MAY has been rising over the past few days, reaching a local peak. Overall, ETH’s volatility levels are 5–10% higher than BTC’s. The term structure is also flatter due to the higher front-end Vol Premium. This will undoubtedly be a pivotal moment for the crypto community. Although the market remains relatively optimistic about the approval of the ETH ETF, ETH’s recent weak performance suggests that the market has already priced in a potential rejection. Analysts believe that approval may be achieved next year, offering more investment opportunities and driving the growth of the entire crypto industry.
Source: SignalPlus, BTC & ETH ATM Vol
Source: Deribit （As of 20MAY 8:00 UTC）
In trading, the local IV peak for ETH 24MAY has attracted a significant Sell Straddle trade of 3250 ETH per leg, betting on the IV-RV premium. For BTC, there has been a large influx of put option purchases across various maturities in May and June over the past day, leading to a drop in Vol Skew for that period.
Source: SignalPlus, BTC & ETH 25dRR
Data Source: Deribit，The overall distribution of ETH trades
Data Source: Deribit，The overall distribution of BTCtrades
Source: Deribit Block Trade
Source: Deribit Block Trade
