Traders Shift to Stocks and Pre-IPO Perps, Bitcoin Sags

Market snapshot: Bitcoin and Ethereum lose trading momentum

Trading activity in major cryptocurrencies has cooled as derivatives traders migrate toward equity- and commodity-linked perpetual contracts, according to a June 5 research note from Block Scholes shared with crypto.news. Daily perpetual volumes for Bitcoin and Ethereum on Hyperliquid have eased to multi-quarter lows, while certain non-crypto perps and pre-IPO instruments have seen sharp inflows of speculative capital.

Key data points

• Bitcoin perpetual futures on Hyperliquid are trading near $2 billion per day.
• Ethereum perpetual volumes sit around $600–$700 million per day.
• Combined daily volume in three non-crypto perpetuals—Nasdaq-100 (XYZ100), S&P 500 (SP500), and WTI crude oil (CL)—has reached roughly $1.3 billion.
• Notional trading in those three markets totaled about $27.1 billion over the past month, equal to ~112% of Ethereum perps and ~38% of Bitcoin perps on the same exchange.

Block Scholes: shifting risk appetite across instruments

Block Scholes’ in-house Bitcoin and Ethereum Risk Appetite Indexes have declined over the past week, reflecting softer market sentiment for crypto majors even as speculative interest remains robust elsewhere. The firm notes that the reduction in BTC and ETH perp volumes is not necessarily a straight capital migration, but signals that trader attention and speculative activity have been redirected to alternative products available on the same venue.

Bitcoin risk appetite index

Recent developments appear to be amplifying the pull away from the largest cryptocurrencies. The report highlights a notable strategic move by Strategy, which sold approximately $2.5 million of Bitcoin from its holdings—an unexpected step given years of public accumulation under Executive Chairman Michael Saylor. At the same time, U.S. spot Bitcoin ETFs have recorded their longest streak of outflows since their introduction, further weighing on risk appetite for BTC.

Why traders are choosing stock- and commodity-linked perps

Derivatives desks and retail speculators alike are increasingly using perpetual futures tied to equity indices and commodities to express directional views on concentrated equity themes such as AI infrastructure, semiconductors, defense, energy and commodities. On Hyperliquid, the most active non-crypto perpetuals are linked to major U.S. equity indexes and WTI crude oil—markets that have attracted substantial momentum flows.

Block Scholes reports that the concentration of trading in a handful of high-performing equity sectors is draining some liquidity that might otherwise have supported alternative assets like Bitcoin. Binance Research has similarly observed amplified capital flows into specific U.S. equity sectors; their analysis using the CBOE Dispersion Index found the gauge had reached 42, the third-highest reading on record. Historically, such concentrated equity leadership often coincides with periods of weakness in Bitcoin and other alternative assets.

Implications for crypto derivatives

The shift in order flow means liquidity providers and market makers on venues such as Hyperliquid are accommodating larger notional volume in equity- and commodity-linked perps. For crypto traders, that creates both opportunities and risks: opportunities to capture high leverage and thematic exposure that may outperform BTC in the short term; risks related to cross-market contagion if sudden equity reversals send volatility across correlated derivatives.

Pre-IPO perpetuals: a fast-growing niche

Another standout trend is the explosive growth of pre-IPO perpetual contracts. Block Scholes documents a jump in the ratio of pre-IPO perp volume to Ethereum perp volume from roughly 0.1% to nearly 3% in recent weeks. Daily trading in the pre-IPO segment has climbed from under $5 million to more than $50 million, with SpaceX-linked contracts leading activity.

This surge has been rapid and concentrated—activity in late May and early June accelerated while Bitcoin and Ethereum volumes remained subdued. The rise of pre-IPO perps highlights how crypto-native derivatives traders are leveraging decentralized venues to gain early, high-leverage exposure to private-company narratives before traditional public listings.

HYPE risk appetite index

Divergence across crypto assets

Block Scholes’ risk appetite indicators also reveal divergence within the crypto market. While Bitcoin and Ethereum risk appetite measures have softened, the exchange’s native HYPE token shows a rising risk appetite signal. That illustrates how pockets of crypto liquidity and speculative interest can remain vibrant even as majors cool off.

For portfolio managers and traders, this divergence underscores the importance of cross-asset monitoring—assessing equity sector concentration, ETF flows, and token-specific indicators—to better understand where leverage and liquidity are congregating.

Outlook: what traders should watch next

Short-term drivers to monitor include flows into U.S. spot Bitcoin ETFs, changes in equity sector leadership (measured via indices like the CBOE Dispersion Index), and volume trends for pre-IPO and stock-linked perps on derivatives platforms. A reversal in concentrated equity leadership or renewed inflows into BTC/ETH could quickly reallocate speculative capital back to crypto majors.

Longer term, the pattern suggests derivatives platforms that offer a broad menu of products—crypto perps, equity/commodity perps, and pre-IPO contracts—may continue to see shifting liquidity as traders pursue the highest-risk-adjusted returns. For crypto investors, staying informed on perpetual futures volume, notional exposure, and risk appetite gauges will be essential to navigate a market where attention, not just capital, drives trading activity.

This article synthesizes Block Scholes’ report and market context from recent research by Binance Research to explain why traders are favoring equity and pre-IPO perpetuals while Bitcoin and Ethereum see subdued trading volumes.