Wintermute analyst's latest observations show that funds are flowing from Bitcoin (BTC) to Ethereum (ETH), a trend that is particularly evident in the derivatives market. Ethereum's open interest surged over the weekend, and implied volatility increased, indicating traders' confidence in its future performance.

Specifically, Ethereum's implied volatility has risen sharply, with put-call skew reaching its highest level in a year, suggesting that investors' preference for upward risk in Ethereum has strengthened. Traders are actively pushing the market higher by buying call options.

Analysis points out that this trend in fund flow reflects optimistic expectations for Ethereum, especially in the performance of the derivatives market.