TL;DR
- Ethereum perpetual futures open interest jumped by $10 billion in just one week, up 56% to over $28 billion, marking the strongest signal of a risk-on shift since last year’s meme-coin peak.
- Institutional block trades surged alongside major U.S. stablecoin legislation, as corporate treasuries load up on ETH as the go-to infrastructure for regulated, dollar-backed tokens.
- Spot Ethereum ETFs drew $602 million on July 17 (vs. $522 million for Bitcoin), staking-enabled products loom, and ETH’s market share gains point to an incoming altcoin season.
Ethereum’s derivatives market exploded this July as perpetual futures open interest vaulted from under $18 billion to more than $28 billion in just seven days. Singapore-based trading desk QCP Capital calls this 56% jump “the clearest evidence yet that altcoin season is finally underway.” The composite altcoin-season index has risen above the critical 50-point threshold for the first time since December, signaling a broad rotation into risk-on assets.
Asia Colour 21 Jul 25
1/ Is altcoin season finally here? Altcoin season indexes have surged past 50 across major sources, the highest since December. $ETH perpetual open interest has spiked from under $18B to over $28B in a week, and this time it looks like institutions are…
— QCP (@QCPgroup) July 21, 2025
Record-Breaking Futures Open Interest
Perpetual open interest, which measures the total value of outstanding futures positions, hit a record high above $28 billion by mid-July. That represents a staggering $10 billion inflow in a week, dwarfing typical retail momentum and hinting at deeper structural shifts. The rush into ETH contracts is so intense that implied volatility skews now favor upside calls to their widest margin since last year’s meme-coin frenzy.
Institutions Fuel the Rally
While retail traders chase momentum, institutions are leading this cycle’s charge. QCP notes huge block trades on both CME and Binance, often sized well above historical norms. The catalyst? Last Friday’s signing of landmark stablecoin legislation mandates 100 percent U.S. Treasury or cash reserves and subjects issuers to rigorous oversight.
With regulatory clarity in hand, corporate treasuries are racing to build up stablecoin and ETH allocations, treating Ethereum as the infrastructure layer primed to benefit from surging dollar-backed token issuance.
Spot ETF Flows Signal Shifting Capital
Spot ETH exchange-traded products drew $602 million on July 17, outpacing Bitcoin ETFs’ $522 million intake. BlackRock’s iShares Ethereum Trust took the lead, securing the largest single subscription. Its pending amendment to enable on-chain staking is widely viewed as the next major catalyst, expected to win SEC approval later this year. If granted, yield-bearing ETH ETFs would offer institutions yet another compelling reason to diversify beyond Bitcoin.
Options and Market Share Dynamics
Derivatives positioning mirrors spot-market enthusiasm. Traders are aggressively buying out-of-the-money call spreads and risk reversals across every tenor, signaling a willingness to pay up for fourth-quarter upside. ETH’s market share increased from 9.7% to 11.6%, whereas Bitcoin’s dominance fell to 60%.
