Ethereum Gains Favor Over Bitcoin as Volatility Spread Widens and ETF Inflows Surge
Ethereum’s native token ETH is fast becoming the top pick among crypto traders, outperforming bitcoin (BTC) in both price action and derivatives sentiment. Over the past 24 hours, ETH surged 8% to $2,728, while BTC gained just 1%, according to CoinDesk data.
Driving the momentum is a sharp increase in implied volatility. The spread between ether’s and bitcoin’s 30-day implied volatility indexes (EVIV and BVIV) has jumped to 34%, its highest level since the FTX collapse in November 2022. This suggests traders expect greater price swings in ETH relative to BTC in the near term.
In options markets, ETH call options on Deribit are trading at a 2%–3% premium to puts, a stark contrast to BTC’s 0.5%–1.5% premium, according to Amberdata — a clear sign of bullish bias toward ether.
“Ethereum is seeing renewed institutional demand,” said Alex Kuptsikevich of FxPro. “In the last two weeks alone, ETH ETFs have attracted $812 million, the strongest inflow this year.”
Meanwhile, bitcoin ETFs have drawn in less than $400 million over the same period, underscoring the rotation in investor preference.
Traders are also reacting to macro-level catalysts. QCP Capital pointed to several developments that may support further upside in ETH, including:
- The GENIUS Act gaining momentum in the U.S. Senate
- Fresh IPO discussions around Circle, a major stablecoin issuer
- Growing regulatory support for stablecoins and tokenized finance
“Ethereum’s foundational role in settlement infrastructure and tokenization makes it a prime beneficiary of these shifts,” QCP said in a note.
Analytics firm Block Scholes added that ether’s bullish positioning is further evidenced by a 6.24% skew in 30-day calls, rising funding rates at 0.009%, and a re-inversion in ETH’s volatility curve — typically a sign of short-term bullish conviction.
While bitcoin continues to hold the top spot by market cap, traders appear to be leaning into ether’s volatility and upside potential, especially amid growing signs of institutional accumulation and regulatory clarity.
