As Ethereum spot ETF listing approaches, ETH hedging activity increases and implied volatility rises

Odaily Odaily News: With the upcoming listing of Ethereum spot ETFs, investors have flocked to the options market to hedge or protect existing market positions from price fluctuations. According to data from Deribit and Kaiko, implied volatility (IV) has risen across different time frames. This shows that there has been an increase in demand for options or derivatives that protect against price fluctuations. Hedging activities are more obvious in short-term contracts, and the implied volatility determined by the options contracts expiring on July 19 relative to those expiring on July 26 has been relatively high recently. According to Kaiko data, the IV expiring on July 19 rose from 53% last Saturday to 62% on Monday, exceeding the IV expiring on July 26. Kaiko analysts said in the Monday version of the briefing: "The increase in IV of the July 19 contract shows that traders are willing to pay higher prices to hedge existing positions and protect against large price fluctuations in the short term. The recent surge in IV of the contract indicates that there is a certain degree of uncertainty among traders." Traders also expect Ethereum's volatility to increase relative to Bitcoin. According to Amberdata, the average spread between the 30-day Ethereum and Bitcoin implied volatility indices (BTC DVOL and ETH DVOL) on Deribit has been around 10% since late May, significantly higher than the 5% in the first quarter. (CoinDesk)