Retail Buyers Lead the Way as Bitcoin and Ethereum SFV Trends Diverge

• Data analyzed by CryptoSlate showed a strong contrast between Bitcoin and Ethereum Spot to Futures Volume (SFV) trends, with the former’s SFV continuing to rise.
• The Spot to Futures Volume metric looks at the ratio of spot volume against futures volume for a particular cryptocurrency.
• Bitcoin SFV has oscillated relatively uniformly between 0.2 and 0.4 since January 2020, while the Ethereum SFV print shows a more haphazard pattern.

Research conducted by CryptoSlate revealed an interesting trend between Bitcoin and Ethereum Spot to Futures Volume (SFV) metrics. The Spot to Futures Volume metric looks at the ratio of spot volume against futures volume for a particular cryptocurrency. Spot price refers to the current quote for the immediate purchase of the cryptocurrency and forms the basis for all derivatives markets. As the SFV increases, it indicates that retail buyers are buying the asset at a higher rate than institutions, professional traders, and experienced investors.

When looking at the Bitcoin SFV, the data shows that it has oscillated relatively uniformly between 0.2 and 0.4 since January 2020. However, the SFV broke out of this range last summer, climbing higher to peak at just under 0.7 this week, suggesting that retail buyers are piling into Bitcoin at a greater proportion compared to institutions and professional traders.

In contrast, the Ethereum SFV print shows a more haphazard pattern. Unlike the previous example, the ratio of the spot to futures volume has been recording lower lows since May 2022, with the latest reading at 0.2. This indicates that while retail buyers are still purchasing Ethereum, they are doing so at a lower rate than institutions, professional traders, and experienced investors.

The data from CryptoSlate shows that retail investors have been the driving factor in the recent surge of Bitcoin prices above $20,000. This is a remarkable trend, as it suggests that the market is becoming more democratized and that retail investors are taking on a more active role in the cryptocurrency markets. This could be a sign of a more mature market, as retail buyers are more likely to be less volatile and more likely to hold their investments for the long term.

It is also important to note that the Ethereum SFV has been declining since May 2022, which could be an indication that Ethereum is not experiencing the same levels of retail buying as Bitcoin. This is something worth keeping an eye on, as trends in the cryptocurrency markets can often change quickly and unexpectedly.

Overall, the data from CryptoSlate provides an interesting insight into the cryptocurrency markets and the roles that retail buyers and institutions are playing in the current market conditions. The fact that Bitcoin’s SFV is rising while Ethereum’s SFV is declining is a sign that retail buyers are becoming more involved in the market and are driving the prices of both Bitcoin and Ethereum higher. As the cryptocurrency markets continue to mature, it will be interesting to see how retail buyers continue to shape the market.