Contrasting BTC and ETH Derivatives Signals After a Rally

Summary

This weekly report compares BTC and ETH derivatives after BTC approached a new all-time high and ETH outperformed. It tracks futures implied yields, perpetual funding rates, at-the-money implied volatility, and 25-delta risk reversals. The report describes BTC’s short-term volatility and funding rates easing as spot momentum slowed, with short-dated options skewing toward puts despite only a modest weekly spot decline. ETH showed the opposite pattern: a strong spot rally coincided with elevated short-dated implied volatility, an inverted volatility curve, and call-favoring skew.

These measures offer a compact way to compare directional positioning and expected volatility across assets and maturities. The report also notes differences between the BTC and ETH futures curves, then refers to exchange-level volatility and skew charts. It provides descriptive observations rather than a forecast, trading rule, or causal test. The evidence is a weekly market snapshot; chart data and calculation details are not included in the text, and the reported relationships may not generalize beyond the period covered.

Key ideas

• BTC funding and front-end implied volatility declined as its spot rally slowed.
• BTC short-tenor options favored puts despite a small weekly spot decline.
• ETH outperformance coincided with higher short-dated implied volatility and an inverted volatility curve.
• ETH short-dated risk reversals favored calls, contrasting with BTC’s put-tilted skew.
• The report describes market conditions but does not establish predictive trading rules.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.