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Institutional buying drives a big pump in ETH open interest; the altcoin season may have begun.
[Coin World] QCP Capital stated in the market weekly report released on July 21 that several altcoin season indicators have broken through 50, reaching the highest level since December of last year. Additionally, the open interest of ETH Perptual Futures has surged from 18 billion to 28 billion dollars within a week, signaling that the altcoin season may have officially begun.
QCP points out that the main players in this cycle are institutional investors, benefiting from the clarity brought by the implementation of the GENIUS Act regarding stablecoin regulation. Corporate finances are starting to increase their holdings in L1 blockchain tokens such as ETH, SOL, XRP, and ADA, similar to the role of BTC in the fiscal allocation of Strategy and Metaplanet.
If ETH receives SEC approval for its staking spot ETF in the coming months, it may attract funds from BTC ETF to ETH, further unleashing its yield potential. In fact, last week, the daily net inflow of ETH spot ETF exceeded BTC for two consecutive days, showing a surge in institutional interest in ETH, and BlackRock is also confident in its staking ETH ETF.
In addition, the bullish spread trading in the ETH options market is active, with a notable increase in bullish spread positions expiring in September and December, highlighting the market's optimism for the fourth quarter.
The current BTC market dominance has dropped from 64% to 60%, while ETH's market share has risen from 9.7% to 11.6%. If the trend continues, a new altcoin season may have already begun. QCP stated that it will continue to monitor relevant signals and update developments in a timely manner.