Ether Attracts Institutional Attention as Derivatives Traders Shift Gears
Ethereum may be lagging behind Bitcoin in headline performance, but a deeper look into crypto derivatives markets reveals a different story — one in which big money is increasingly favoring ETH as the next major mover.
While Bitcoin (BTC) has surged to fresh all-time highs above $110,000, gaining over 16% year-to-date, Ether (ETH) has slipped roughly 20% since January, despite maintaining its dominance in DeFi and enterprise tokenization.
Yet, sentiment among professional traders appears to be turning.
Options Markets Reveal a Hidden Bullish Tilt
Data from Deribit, the top crypto options exchange, shows both BTC and ETH skewed positively in their 25-delta risk reversals — a signal that traders are buying more call options (bullish) than puts (bearish).
But the real divergence lies in pricing: ETH calls are commanding a higher premium than BTC, meaning traders are assigning greater upside potential to Ethereum. In short, they’re paying more to bet on ETH’s rally — a clear sign of shifting sentiment.
CME Futures Open Interest: ETH Catches Up
Institutional interest, as measured by CME futures open interest, paints a similar picture.
Bitcoin’s open interest climbed 70% after April’s sell-off, reaching over $17 billion, but has since leveled off. In contrast, Ether’s open interest has soared 186% to $3.15 billion, with momentum building steadily over the past two weeks.
This rapid growth points to institutional desks increasing their exposure to ETH — possibly in anticipation of a catch-up rally or simply to rebalance portfolios as Ethereum gains technical strength.
Futures Pricing and Funding Rates Confirm the Trend
Futures premiums also reflect growing bullishness. As of now, one-month ETH futures are trading at a 10.5% annualized premium, compared to 8.74% for BTC — a rare flip that favors Ethereum.
Offshore, the picture is even clearer: ETH perpetual futures funding rates are nearing 8%, while BTC hovers under 5%. Elevated funding means traders are eager to stay long ETH, even if it costs more to do so.
Part of the reason BTC’s basis remains subdued may be due to increased cash-and-carry arbitrage, which dilutes directional price pressure without implying bearishness — but also signals less conviction among bulls.
Looking Ahead
Despite ETH’s underperformance in spot markets, the derivatives landscape tells a different story — one of rising institutional conviction and growing risk-on positioning in Ethereum.
With option pricing, futures premiums, and open interest all flashing ETH strength, the setup may be forming for Ethereum to close the gap and potentially outperform in the next leg of the crypto market cycle.
