Ethereum Reclaims Trader Spotlight as Volatility and ETF Inflows Outpace Bitcoin
After months of trailing in bitcoin’s shadow, Ethereum (ETH) is regaining momentum as traders and institutions shift focus. ETH surged 8% in the past 24 hours to $2,728, significantly outperforming bitcoin’s 1% climb, according to CoinDesk data.
The renewed enthusiasm is evident across both spot and derivatives markets. Data from TradingView shows that the volatility spread between ether and bitcoin — measured by Volmex’s 30-day implied volatility indexes — has widened to 34%, the highest since the November 2022 FTX crash. The shift signals that traders are bracing for larger price swings in ETH, and perhaps see it as the more dynamic asset for near-term movement.
This narrative is supported by activity in the options market. On Deribit, ETH call options are commanding a premium of 2%–3% over puts extending out to March 2027. In contrast, BTC call premiums sit between 0.5% and 1.5%, per Amberdata, highlighting a greater appetite for upside exposure in ether.
Fueling the rally is a wave of capital flowing into Ethereum-based ETFs. According to FxPro’s Alex Kuptsikevich, $812 million has entered ether ETFs over the last two weeks — the highest inflow of the year. Bitcoin ETFs, by comparison, attracted less than half that amount.
Institutional sentiment may be shifting as macro factors align in ETH’s favor. In a market update, QCP Capital pointed to developments like the GENIUS Act in the U.S. Senate, renewed attention to Circle’s IPO, and growing regulatory acceptance of stablecoins — all of which could benefit Ethereum’s role as infrastructure for tokenized finance.
Block Scholes added more bullish signals:
- 30-day ETH call skew has climbed to 6.24%
- Funding rates have jumped to 0.009%
- The volatility curve has re-inverted, often a precursor to strong upward movement.
While bitcoin remains the benchmark, Ethereum appears to be capturing the narrative — and the capital — as traders bet on a more explosive second half of 2025 for the world’s second-largest crypto.
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