QCP Capital projects Ethereum to demonstrate notably greater volatility in contrast to bitcoin

QCP Capital projects- QCP Capital anticipates Ethereum to exhibit considerably higher volatility than Bitcoin

QCP Capital projects- Ethereum (ETH +0.90%) is expected to see much larger price fluctuations compared to bitcoin in the coming period, evident in the higher options volatility premium for the second-largest cryptocurrency by market capitalization.

The volatility premium of Ethereum over bitcoin has expanded to approximately 8% for longer-term expiries, up from 4% last week, noted analysts from QCP Capital.

Additionally, QCP Capital analysts indicated a preference for accumulating Ethereum, highlighting its comparatively lower spot price in light of the increase in implied volatility for the asset.

Ethereum Shows Resilience Despite BTC Transfer and ETF Outflows

QCP Capital analysts observed Ethereum’s robust price performance relative to bitcoin following the U.S. government’s transfer of 30,000 BTC (about $2 billion) to an undisclosed wallet, as reported by Arkham Intelligence. Despite four consecutive days of spot ETF outflows, Ethereum’s ETH-BTC trade gained 5% post-Trump’s speech.

In its inaugural week, Ethereum spot ETFs reported significant net outflows, totaling $1.5 billion from Grayscale’s ETHE alone. Conversely, competing funds like BlackRock’s ETHA and Bitwise’s ETHW attracted a combined net inflow of just over $1 billion.

Looking forward, QCP Capital analysts suggested that if outflows from Grayscale’s ETHE subside and daily inflows into Ethereum ETFs rise, Ethereum could potentially see a notable upward breakout in the market.

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