The ongoing volatility premium of ETH compared to Bitcoin reflects a strong interest in Ethereum even during recent market turbulence and sell-offs. Eugene Cheung, Head of Institutions at Bybit, expressed his expectation of growing interest in ETH among investors with its increasing accessibility. He also emphasized the bullish long-term outlook for spot ETFs and their potential impact on the market. In the short term, the market is pricing in a somewhat subdued response, but Cheung sees this as a bullish catalyst for ETH in the long run.
He highlighted the potential diversification benefits of ETH over BTC due to its broader range of use-cases. The positive response to the news has resulted in a 12% increase in Ethereum’s price over the last five days. The anticipated investment influx from these ETFs is likely to have a significant impact on Ethereum’s market dynamics. Cheung noted that similar to BTC ETFs, ETH ETFs could open up new trading opportunities and strategies in the future, such as using them as a basis for trades.
Furthermore, the introduction of an ETH ETF is seen as a positive development for the crypto industry, as it integrates digital assets into traditional financial markets and establishes a precedent for future innovative financial products.
