Signs of market maturation also appeared in derivatives. Options activity surged, more than doubling year over year and increasing 2.5 times from the fourth quarter of 2024 to the fourth quarter of 2025. Usage shifted away from outright directional bets toward more systematic strategies such as yield generation, downside hedging, and covered calls.
FAQ Where did most new crypto liquidity go in 2025? Most capital flowed into bitcoin and ether via ETFs and trusts, leaving limited liquidity for altcoins. Why did altcoin rallies fade faster in 2025?Liquidity stayed concentrated in major assets, shortening altcoin rallies to about 20 days. How did derivatives markets change last year? Options activity surged as traders favored hedging and yield strategies over directional bets. What does Wintermute expect could change this in 2026? Broader ETF mandates, a BTC– ETH wealth effect, or renewed retail interest could spread liquidity.ETFs Reshaped Crypto Liquidity Flows in 2025
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