The post Ethereum will perform better than Bitcoin post-ETF launch appeared on BitcoinEthereumNews.com.

Ethereum is going to outshine Bitcoin once the spot ETFs for ETH launch, according to a report by Kaiko. The crypto market has seen some big changes since the SEC gave the green light to Ethereum ETFs back in May.  Although Ethereum’s price has dropped nearly 20% over the past two months, there’s more to the story. Under the surface, Kaiko said Ethereum looks primed for a huge boost the second these ETFs start trading. Source: Kaiko The ETH to BTC ratio, which shows how Ethereum stacks up against Bitcoin, is still high around 0.05. This is a solid sign that Ethereum could outperform Bitcoin after the ETFs go live. Before the approval, this ratio was around 0.045. Liquidity conditions for Ethereum have stayed solid. Even though trading volumes typically dip during the summer, Ethereum’s 1% market depth has been steady around $230 million since the approval. This is up from early May when it fell below $200 million. Meanwhile, the spot markets for Ethereum have stayed tough despite the 20% drop in prices. Perpetual futures, however, have cooled down faster. Funding rates have dropped by half since May, showing that traders are less confident and not as willing to pay high rates to keep their long positions.  Source: Kaiko Open interest, which was around $11 billion after the approval, has also fallen. This drop in funding rates and open interest is likely tied to uncertainty about when the ETFs will actually launch. Kaiko noticed that implied volatility (IV) on near-term options contracts shot up over the past week. Deribit ETH options expiring on July 19 and 26 saw the biggest changes. It jumped to 62% on Monday from 53% on Saturday, rising above the longer-dated July 26 contract. This means that traders are willing to pay more to hedge…

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Filed under: News - @ July 16, 2024 8:20 am