Bitcoin Holds Greater Short-Term Potential Over Ethereum

Options traders are currently more optimistic about bitcoin's short-term price movements compared to ether, according to a report by QCP Capital analysts. The analysts noted that the anticipated surge in Ethereum prices following the launch of spot Ethereum exchange-traded funds (ETFs) on Tuesday did not materialize as expected.

According to Bitpush, in the past 24 hours, Ethereum's price has dropped by 1.4%, trading at $3,455 at the time of writing, according to data from The Block's Price Page. QCP Capital's analysis highlights that bitcoin options now exhibit higher implied volatility than ether options, suggesting greater expected price movements for BTC in the near term. The premium of ether's implied volatility over bitcoin's has reversed, with bitcoin's 1-week and 2-week options trading at 1 to 3 points higher than ether's.

The first day of trading for the highly anticipated spot Ethereum ETFs saw net inflows of over $107 million, a notable underperformance compared to the $655 million net inflows observed during the launch of spot bitcoin ETFs. A significant factor contributing to this underperformance was the $484 million outflow from the Grayscale Ethereum Trust (ETHE) on the first day of trading.

Despite the lukewarm initial reception, QCP Capital analysts maintain a positive outlook for ether in the medium to long term. They cite bitcoin's achievement of an all-time high two months after its ETF launch as a precedent, suggesting that sustained institutional interest could lead Ethereum's price to gradually approach its previous highs.

Valentin Fournier, a BRN analyst, also expressed optimism about the future of Ethereum ETFs, indicating that positive activity could counteract the initial sell-off post-launch and drive prices higher. However, he noted that bitcoin is likely to outperform ether in the near term due to increased crypto activity and the reduced impact of the Ethereum ETF launch sell-off on bitcoin.

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