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Ethereum Futures Surge as Bitcoin ETFs See Institutional Inflows
Speculative trading on Ethereum has surged ahead of major macroeconomic decisions expected this week, while institutional capital appears to favor Bitcoin through exchange-traded funds (ETFs), creating a notable divergence in market behavior.
Futures Traders Flock to Ethereum
According to data from Coinanalyze, Ethereum’s 24-hour futures trading volume hit $49.4 billion, surpassing Bitcoin’s $42.9 billion. The increased activity suggests growing risk appetite for the second-largest cryptocurrency.
This jump in futures interest comes amid a broader shift in trader behavior. “I think we’ll close Q3 on an uptrend led by altcoins,” said Stephen Gregory, founder of crypto trading platform Vtrader, speaking to Decrypt. He noted that expectations of a possible half-point rate cut by the Federal Reserve have accelerated flow into altcoins.
ETFs Show Bitcoin Preference
While retail and derivatives traders are betting on Ethereum, ETF data tells a different story. Over the past ten days, U.S. spot Bitcoin ETFs saw net inflows of $1.39 billion, according to SoSoValue. In contrast, Ethereum ETFs recorded outflows of $668 million, suggesting institutional investors are rotating capital into Bitcoin.
Gregory attributes the Bitcoin ETF inflows to “FOMO trading from new wealth managers finally allowed to allocate capital.”
Altcoin Volume Gains Ground
Coinanalyze data also shows altcoins now account for 50% of total trading volume, a notable rise from the previous 40%. Meanwhile, Bitcoin’s dominance has dropped from 31% to 21%.
Ethereum has benefited most from this rotation, gaining 31% year-to-date, compared to Bitcoin’s 19%, based on CoinGecko data.
Options Market Remains Cautious
Despite increased futures activity, the options market reflects a more conservative stance. Adam Chu, chief researcher at options platform GreeksLive, said implied volatility remains low.
