Futures Traders Flock to Ethereum as ETF Investors Rotate to Bitcoin

Experts suggest growing anticipation prior to important macro-economic events this week led to a grim divergence between futures traders who gamble on Ethereum and stock market-built funds that rotate their capital on Bitcoin.

Aggregate 24-hour Future volume for Ethereum reached $ 49.4 billion, and surpass Bitcoin’s $ 42.9 billion, data from Analytics Firmm Coinalysis Shows.

The increase in speculative importance for the second largest crypto contrasts with capital flows in the ETF room.

US Spot Bitcoin ETFs have had a net inflow of $ 1.39 billion in the last ten days, according to data from Sosovalue.

In the same period, Spot Ethereum has seen ETFs out of $ 668 million, which emphasized a rotation trade by institutional investors.

Stephen Gregory, founder of Crypto Trading Platform Vtrader, said Decrypt That the divergence between the top two cryptocurrencies is typical, especially with the possibility of half a point speed that is lowered by the FED, which drives the shift in streams to Ethereum and Altcoins.

“I think we will close Q3 to an uptrend led by Altcoins,” he added.

The prospects of Gregory are reflected by Coinanalyze data, which shows that the share of altcoins in the total trade volume this week has risen to 50% after consolidating around 40% for weeks. For comparison: the volume -Dominance of Bitcoin fell to 21% of 31%.

Gregory attributed the strong Bitcoin ETF inflow to “FOMO trading of new asset managers who finally assign capital”.

As a result, the rotation trade has increased a significant performance gap with Ethereum by 31% years to date, which exceeds Bitcoin’s profit, 19%, Coentecko Data shows.

While the Futures traders show a growing interest in Ethereum and Altcoins, the option market data reveals a more tempered prospects.

Implicit volatility, which follows the future expectations of the market on the basis of option data, remains low, Adam Chu, main researcher at Greekslive, an options trade platform, told Decypte.

Despite the rate decision next week, he said: “The option market is the price in a relatively low future volatility, with a consensus that has already been processed a speed rate of 25-base point.”

“The general market sentiment remains more favorable to the prospects in the fourth quarter,” said Chu.