Ether Gains Trader Interest as Volatility vs. Bitcoin Reaches Highest Level Since FTX Collapse

Ether Overtakes Bitcoin in Trader Favor as Volatility Spread Hits Post-FTX High

Ethereum’s ether (ETH) is drawing renewed trader interest, with derivatives and spot markets pointing to a growing preference over bitcoin (BTC). On options exchange Deribit, ETH call options are trading at a 2%–3% premium over puts through March 2027 — a sign that traders are paying more for upside exposure in ETH. In contrast, BTC calls hold a more modest 0.5%–1.5% premium, according to Amberdata.

This shift in sentiment is also reflected in volatility metrics. The spread between Volmex’s 30-day annualized ether implied volatility (EVIV) and bitcoin’s BVIV has widened to 34%, its highest level since November 2022, when the FTX collapse rattled markets. The widening gap signals expectations for more dramatic price moves in ether versus bitcoin.

ETH’s recent 8% price rally, climbing to $2,728, far outpaced bitcoin’s 1% gain over the same period, according to CoinDesk data. This outperformance is being fueled by surging institutional demand, particularly through spot ETH ETFs.

“Ethereum is pumping up with new money. Over the past two weeks, Ethereum ETFs have attracted $812 million, the biggest inflow since the start of the year,” said Alex Kuptsikevich, chief market analyst at FxPro.

In contrast, bitcoin ETFs have seen under $400 million in net inflows over the same period, based on figures from SoSoValue.

Singapore-based trading firm QCP Capital highlighted multiple tailwinds driving ether’s momentum:

“With the GENIUS Act progressing in the U.S. Senate, Circle’s IPO discussions re-emerging, and regulatory clarity improving around stablecoins, Ethereum’s infrastructure role in tokenization and settlements could see outsized structural gains,” QCP noted in a market update.

Supporting the bullish view, Block Scholes reported that ETH options markets are heating up, with:

30-day call skew rising to 6.24%
Funding rates climbing to 0.009%
A re-inverted term structure in volatility — often a signal of near-term bullish positioning.

Together, these developments indicate that ether is not only catching up to bitcoin — it’s temporarily becoming the preferred asset for traders anticipating sharp market moves.