Deribit Exchange Data Shows Institutional Investors Favoring Ether Over Bitcoin in Derivatives Market

Institutional investors are increasingly positioning for ether’s outperformance against bitcoin, as indicated by derivatives market activity on Deribit. The 25-delta risk reversals reveal stronger bullish sentiment for ETH options compared to BTC, signaling a potential reversal of this year’s performance gap.

While Bitcoin has rallied 16% year-to-date amid ETF inflows and macroeconomic tailwinds, ether remains down 20% despite Ethereum’s dominance in decentralized finance (DeFi) and tokenization. This divergence may narrow as sophisticated traders build long exposure through call options, which grant the right to buy at predetermined prices.

The options skew reflects growing institutional conviction that ether’s underperformance has created a catch-up opportunity. Market makers report heightened demand for ETH calls relative to puts, with the derivatives market often serving as a leading indicator for spot price movements.