Key Points
- Ethereum (ETH) price has seen an 18% increase, surpassing $3,650 levels due to anticipation of a spot Ethereum ETF.
- Increased interest in Ethereum has boosted the open interest for its weekly and monthly options expiries.
Over the past 24 hours, the price of Ethereum (ETH) has seen a significant increase of 18%, exceeding the $3,650 mark.
This surge has also led to a 250% increase in daily trading volume.
Ethereum ETF Approval Odds
This increase comes after Bloomberg analyst Eric Balchunas raised the probability of the approval of a spot Ethereum ETF from 25% to 75%.
The US SEC has requested exchanges like Nasdaq and NYSE to submit their 19b-4 filings, according to Balchunas.
He suggests that political pressure might be influencing the SEC’s actions, given the lack of engagement between the regulator and the issuers the day before.
Even if the issuers submit the 19b-4 filings, ETF Store President Nate Geraci stated that the final decision on the registration requirement for individual funds (S-1s) would still be pending.
The SEC might approve the exchange rule changes (19b-4s) separately from the fund’s registration (S-1), potentially delaying the latter beyond the May 23 deadline for VanEck’s Ethereum spot ETF request.
This approach allows the regulator more time to review and approve the necessary documents.
Ethereum Options Expiry
The price surge in ETH and the growing interest in a spot Ethereum ETF have led to increased interest for the weekly and monthly ETH options expiries.
For the May 24 expiry, open interest at crypto exchange Deribit is recorded at $867 million, while for the May 31 expiry, it is at a staggering $3.2 billion.
The open interest for CME’s monthly ETH options stands at $259 million, while for OKX, it’s at $229 million.
The call-to-put ratio at Deribit strongly favors call (buy) options, indicating that traders are more active in purchasing them compared to put (sell) options.
If the price of Ether remains above $3,600 on May 24 at 8:00 am UTC, only $440,000 worth of put options will be relevant for the expiry.
In this scenario, the right to sell ETH at $3,400 or $3,500 becomes irrelevant if it trades above these levels.
Meanwhile, holders of call options up to $3,600 will exercise their right, capitalizing on the price difference.
This would result in a substantial $397 million open interest favoring call options if ETH remains above $3,600 at the time of the weekly expiry.
