Ethereum futures volume surpasses Bitcoin for first time amid 5 month high

Ethereum’s daily futures trading volume exceeded Bitcoin’s for the first time on July 10, a landmark development that coincided with the asset’s price testing the $3,000 level.

The technical flip in the derivatives market indicates a potential shift in trader sentiment and capital allocation, lending credence to narratives of a changing market structure.

Data from Glassnode showed that 24-hour Ethereum futures volume reached $62.1 billion, surpassing Bitcoin’s $61.7 billion. The ratio of ETH to BTC futures volume surged past parity, demonstrating that traders are, for the first time, speculating on and hedging with Ethereum at a scale comparable to Bitcoin.

Crypto futures volume (Source: Glassnode)

Spot Ethereum ETFs in the US, which have provided a more traditional pathway for exposure to ETH, are partly fueling this. July 10 saw record-breaking inflows of 138,000 ETH, and the second-largest inflow in dollar terms at $381 million.

ETH ETF inflows (Source: Coinglass)

However, they come with a critical distinction. The currently approved ETFs do not permit the staking of the underlying assets. This means investors miss out on the yield generated through network validation, a core component of Ethereum’s economic model and a feature that positions it as a potentially yield-bearing asset.

To this point, the SEC has delayed decisions on allowing staking within these products. However, a Solana staking ETF is now live, indicating tides are changing.

Beyond the influence of ETFs, other forms of institutional adoption are growing. The move by some corporate treasuries to acquire Ethereum signals a deepening conviction in the asset’s long-term value. This month, BTCS Inc., a blockchain technology company, announced a strategy to raise $100 million for strategic Ethereum acquisitions.

In a statement reported by Nasdaq, BTCS CEO Charles Allen framed the pivot as a testament to a belief that Ethereum “has significant growth potential and is central to the future digital financial infrastructure” and an anticipation of its significant appreciation. This trend supports analysis from firms like Grayscale, which argues that Ethereum’s vast developer community and established network effects give it a durable advantage despite competition from newer blockchains.

The combination of a strong derivatives market and new institutional inflows is fueling the rotational trade narrative, a theory in which capital flows from Bitcoin into Ethereum, potentially triggering a broader market rally for other digital assets or an alt-season.

The current market forces appear to be following this historical pattern, leading to increased speculation that Ethereum’s strength could lift the broader altcoin market. The culmination of these events, from the futures market flip and price surge to the launch of new financial products, marks a clear resurgence in Ethereum’s standing within the current digital asset economy.

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