Ether options implies increased price volatility ahead of May's ETF decision deadlines, analyst says
Ether options implied volatility for May’s end-of-month expiry shows investors anticipate significant price swings amid growing doubt regarding the approval of a spot ether ETF, an analyst said.
May 23 marks the 240-day window for the U.S. Securities and Exchange Commission to decide on a spot ether ETF proposal from VanEck. Following that, a decision on the ARK/21Shares filing is due by May 24 and a decision on Hashdex's proposal is expected by May 30.
In January, Bloomberg Intelligence analyst James Seyffart set the chances of a May approval at 60%, then dropped his expectations to 35%, but finally decided that the applications would ultimately be denied.
According to YouHodler Chief of markets Ruslan Lienkha Lienkha, this growing doubt is playing out in derivatives markets.
"Ether options expiring at the end of May show us a significant volatility increase in the zone of the $3,600 strike price, so the possible surpassing of this price level by the spot market would be accompanied by elevated volatility. At the same time, the implied volatility curve could be adjusted by new facts or SEC rhetoric during the following month," Lienkha told The Block.
May expiry options not valued over those for April
Ether increased by a muted 0.36% in the past 24 hours and was changing hands for $3,532 at 7:59 a.m. ET, according to The Block's Price Page .
The GM 30 Index , representing a selection of the top 30 cryptocurrencies, has increased by 0.19% to 148.05 in the past 24 hours.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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