Institutional Traders Flock to Ethereum and Hyperliquid Amid Bitcoin Concerns

Institutional traders are increasingly looking at Ethereum and Hyperliquid as higher-conviction opportunities, according to FalconX Head of Trading Strategy Hassan Baseri.

Baseri spoke on June 18 on the Milk Road Show, highlighting that the dominant trade among institutional clients has been 'short crypto, long AI,' with artificial intelligence stocks continuing to absorb market attention and capital.

However, within crypto, traders are watching Ethereum and Hyperliquid closely, while Bitcoin remains under pressure due to concerns around Michael Saylor's Strategy (NASDAQ:MSTR) and its preferred instruments.

Baseri warned that U.S. midterm elections could become a major risk if Democrats gain ground and slow or reverse crypto-friendly regulatory momentum, potentially causing Bitcoin to retest the $55,000 area before confidence returns.