May 31, 2024 marked a collision of forces in the cryptocurrency market, with billions of dollars in Bitcoin and Ethereum options expiring on the same day that the industry continued to digest the SEC’s landmark approval of spot Ethereum ETFs just one week earlier. The convergence of these events created a tense atmosphere for traders navigating both the promise of institutional adoption and the reality of near-term market consolidation.
TL;DR
- 69,000 BTC options expired on May 31 with a put/call ratio of 0.37, signaling bullish sentiment
- 92,000 ETH options also expired amid heightened volatility following the Ethereum ETF approval
- Bitcoin’s max pain price was $66,000, with BTC trading near $67,491 at expiry
- The SEC approved 19b-4 filings for eight spot Ethereum ETFs on May 23, though S-1 registration remains pending
- Ethereum surged from below $3,000 to nearly $3,900 on ETF approval news before settling near $3,760
Massive Options Expiry Sets the Tone
The monthly options expiry on May 31 saw 69,000 Bitcoin options contracts settle with a notable put/call ratio of just 0.37 — a figure that reflects overwhelmingly bullish positioning among derivatives traders. The max pain point, the price at which the most options contracts expire worthless, was calculated at $66,000 per Bitcoin.
With Bitcoin trading around $67,491 at the time of expiry according to CoinMarketCap data, the price sat comfortably above the max pain level, suggesting that call option holders were largely in the money. The notional value of the Bitcoin options expiry alone exceeded $4.6 billion, making it one of the largest monthly expiries of 2024.
Simultaneously, 92,000 Ethereum options contracts also reached their settlement date. The ETH options market had been particularly active in the preceding days, driven by extreme volatility following the unexpected SEC approval of spot Ethereum ETF filing requirements on May 23.
Ethereum ETF Approval: The Aftermath
Just eight days before the options expiry, the U.S. Securities and Exchange Commission delivered what many in the industry considered a shocking decision: approval of 19b-4 rule changes allowing eight separate spot Ethereum ETFs to list and trade on U.S. exchanges. The approval caught many observers off guard — Bloomberg analysts had been putting the odds at as low as 25% as recently as the Monday before the decision.
The market reaction was swift and dramatic. Ethereum’s price surged from below $3,000 to nearly $3,900 in the days surrounding the announcement, representing a gain of over 30%. However, by May 31, ETH had settled back to approximately $3,760 as the initial euphoria gave way to a more measured assessment of what comes next.
The critical caveat is that the 19b-4 approval only covers the exchange listing rules. The actual registration statements (S-1 forms) for each ETF remain under SEC review, meaning the funds cannot begin trading until that separate process is completed. Analysts have speculated that the final approval for trading could take weeks or even months.
The Staking Question Looms Large
One of the most significant details to emerge from the Ethereum ETF approval process was the SEC’s apparent insistence that all eight ETF issuers amend their registration statements to explicitly preclude staking of any ether held by the funds. This requirement reflects the SEC’s ongoing legal position that pooled ether staking may constitute an investment contract — effectively treating it as a securities activity.
For the Ethereum ecosystem, this is a meaningful limitation. Staking is fundamental to Ethereum’s proof-of-stake consensus mechanism, providing network security while generating yields of roughly 3-4% annually. By barring ETFs from participating in staking, the SEC is denying fund investors access to a significant revenue stream that would otherwise make these products more attractive relative to direct ether holdings.
Despite this restriction, the SEC’s classification of the ETF shares as “Commodity Based Trust Shares” carries important implications for ether’s regulatory status, suggesting the commission views the underlying asset as a commodity rather than a security — at least in the context of spot market trading.
Why This Matters
The convergence of a massive options expiry with the ongoing Ethereum ETF narrative represents a pivotal moment for crypto market structure. The heavily bullish options positioning, reflected in the 0.37 put/call ratio, indicates that sophisticated derivatives traders remain confident in Bitcoin’s trajectory despite the consolidation around the $67,000 level. For Ethereum, the ETF approval marks the beginning of a new era of institutional access — even if the actual launch date remains uncertain. The approval also signals a potential softening of the SEC’s historically adversarial stance toward crypto assets, though the staking prohibition shows that significant regulatory friction persists. With the total crypto market capitalization at approximately $2.69 trillion and Bitcoin dominance hovering near 58.7%, the stage is set for a summer that could see significant capital flows as institutional products for both major cryptocurrencies become available to mainstream investors.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.
put/call ratio of 0.37 on 69k BTC options is insanely lopsided. everyone and their mother was positioned for upside. thats usually when the market humbles you.
BTC holding above the $66k max pain was a bullish signal. The ETH side is more interesting though, going from under $3k to nearly $3.9k in a week on ETF news then settling at $3.76k.
the S-1 registrations still pending is the key detail nobody talks about. 19b-4 approval was step one, those S-1s could take months. ETH might cool off hard before real inflows start.
4.6 billion in one expiry. derivatives markets have gotten absurdly deep. ten years ago the entire crypto market cap was smaller than this single options expiry.