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Traders can Start moving funds from BTC to ETH
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Traders can Start moving funds from BTC to ETH

Dec 6, 2023

The key indicators of the derivatives market point to increased attention from experienced traders towards Ethereum (ETH). This comes after a significant rise in the price of Bitcoin (BTC) in recent days. Researchers predict possible dominance of Ethereum in the digital market in the coming weeks.

Bitcoin has surged by over 60% in the current quarter, while Ethereum has gained 35%. This gap is becoming more noticeable on long-term charts. Since the beginning of the year, Bitcoin has seen a growth of 163%, and Ethereum has increased by 89%.

According to Velo Data, open interest in Ethereum futures contracts on the Chicago Mercantile Exchange (CME) has risen by 30% in the last 5 days, reaching $711 million. This growth has outpaced the increase in the dollar value of Bitcoin, which amounted to 19%, reaching $4.9 billion. It's worth noting that the standard CME futures contract for Ethereum consists of 50 ETH, while a similar contract for Bitcoin consists of 5 BTC.

The positive spread between the prices of CME futures for Ether and Bitcoin suggests the same. According to Reflexivity Research, at the beginning of this week, the premium on ETH compared to the spot index price was 5% higher than that of BTC.

It may still be too early to make specific predictions, but it appears that in the coming months, tradfi may begin actively trading ETFs for Ethereum (ETH). This is worth monitoring closely, as it could be the first signs that the market is starting to consider a future Ethereum ETF. Options traders on Deribit are also showing interest in Ethereum call options and Bitcoin put options.

As of December 6, 2023, the price of Bitcoin stands at $43,830, with a daily increase of 5.4%, while Ethereum quotes have reached $2,280, with a 3.55% increase.

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