Will ETH Finally Flip BTC? Ethereum Options OI Surpasses BTC

Ethereum has recently hit some milestones, as the craze around The Merge remains sustained. The markets are generally recording lows in the derivatives section, with BTC funding rates plummeting. Despite disquieting metrics, the Ether derivatives market has sustained a bullish outlook. As a consequence, recent records show ETH overtaking BTC in Options Open Interest.

Ethereum Options OI surpasses BTC’s for the first time

Scandinavian crypto investment firm, Arcane Crypto recently published an update on the crypto derivatives market. The article highlighted the concerning situation of the BTC options market in the past week. Amidst these concerns, Ether futures appear to have gleamed.

According to a chart, Ether options Open Interest (OI) recently soared to a new ATH of $8.2B. For years, Options OI in BTC has surpassed Ether’s, and understandably so. However, with the recently recorded $8.2B in OI, Ether seems to have exceeded BTC’s OI which sits at $5.4B. This will be the first time Ether’s OI surpasses BTC’s.

Additionally, mid-term strike dates for Ether options recorded an implied volatility at 100%. On the other hand, BTC options appear to have registered implied volatility of around 70%. The report takes into consideration three crowded strike dates. These strike dates include September 30th, December 30th, and March 31st.

Ethereum Merge has influenced Ethereum’s auspicious performance

Per the report, Ether’s auspicious performance in the derivatives department can be ascribed to the build-up to The Merge. Ethereum has remained at the centre of almost all discussions within the community, with the Merge approaching. As popularity spreads, so do bullish sentiments gain steam, and interest surges.

Furthermore, Ethereum’s Funding Rate looks quite promising as well. The Funding Rate indicates a dominance of long position traders in the market. Additionally, reaching $31M in the past 24 hours, short positions appear to have been liquidated more.

With The Merge slated for September 15-16, the hype has significantly raised Ether’s market sentiments. ETH’s Coinbase Premium Index currently indicates a relatively strong buying pressure on American institutional investors. At the time of reporting, ETH currently trades at $1,892, having gained by 11% in the past week.