Foresight News reports that May 23 and May 24 are the deadlines for the U.S. Securities and Exchange Commission (SEC) to decide whether or not to approve spot ethereum ETF applications filed by VanEck and ArkInvest/21 Shares, according to The Block. With the strong likelihood that the SEC will not approve the two spot Ether ETF applications, Ether options traders are bracing for a volatile end of the month.

Jake Ostrovskis, an OTC trader at Wintermute, said the market currently sees only a 16 percent chance of these ETFs being approved by the end of May. He adds that implied volatility in ethereum options could rise before the end of the month, especially around the time the SEC is expected to make a decision on the spot ethereum ETF. ostrovskis says, “there is a slight distortion in the term structure of implied volatility in ethereum. pricing was around 60% on may 31st, then the market flattened out, and then went up again from june through the end of the year. this is more than the bitcoin volatility premium, which has been rising since the end of the year. That's an 8-point premium to bitcoin volatility, which is about 52 percent.”

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