Bybit, in collaboration with Blocks Scholes, released itslatest weekly derivatives analytics report, revealing that Ethereum (ETH) hasrecently surpassed Bitcoin (BTC) in key trading metrics.
According to CoinMarketCap, Ethereum is among the topgainers in the cryptocurrency market. This surge in ETH’s performance isattributed to news regarding US SEC Chair Gary Gensler’s upcoming departure atthe end of the Biden administration’s term.
Investors are optimistic about apotentially more crypto-friendly SEC Chair after Gensler’s exit on January 20,2025.
Ethereum Surpasses Bitcoin in Trading Volume
The report highlights that ETH has outperformed BTC in openinterest. Data shows a decline in open interest for BTC perpetual contracts,while ETH’s open interest has been on the rise.
Over the past six months, ETH has also captured a largershare of daily trading volumes, despite a slower market overall this week. Thisshift suggests growing interest in Ethereum as investors anticipate lessregulatory scrutiny in the near future.
Bybit x Block Scholes Derivatives Report: ETH Outperforms BTC, Source: Bybit
Earlier, The USSEC confirmed Gensler’s departure, as reported by Finance Magnates coinciding withDonald Trump’s inauguration. Gensler, known for his strict crypto regulations,faced challenges during his tenure, including the GameStop saga. Despitecriticism, the SEC credited him with reforms aimed at improving marketefficiency and transparency.
Securities and Exchange Chair Gary Gensler will leave on January 20, giving Trump the ability to install a new leader (as the incoming admin talks up crypto) on day 1 pic.twitter.com/GJMetVJvRP
CoinMarketCap data shows that Ethereum’s market cap standsat $428.06 billion, securing the number two spot, just behind Bitcoin.
Source: CoinMarketCap
BTC Price Decline Leads to Flattened Volatility
On the other hand, BTChas seen a decline in price from its previous high of $100K. This has ledto a flattening of the ATM volatility term structure, with short-term optionsdipping below 60%. This drop in BTC’s volatility reflects a broader trendobserved since the US election. While open interest in calls and puts remainssteady, the demand for short-term options has stagnated.
In terms of options, ETH shows slightly more bullishsentiment than BTC. Despite market recalibration following the post-electionhighs, call options for ETH continue to lead in both trading volumes and openinterest.
