Weekly BTC and ETH Derivatives: Funding, Futures Yields, and Volatility

Summary

This weekly market recap reviews BTC and ETH futures, perpetual swap funding, and options volatility. It reports that one-month at-the-money implied volatility was near 40% and broadly steady after a prior decline. Futures yields, funding rates, risk reversals, volatility surfaces, and smile calibrations are also discussed as indicators of positioning and changing demand.

The report describes short-lived term-structure inversions associated with demand for out-of-the-money puts, followed by a move toward more neutral skews. Funding near zero is interpreted as reduced demand for leveraged long exposure. Surface observations use 30 days of hourly implied-volatility history for context. These are time-specific market snapshots, including stated UTC observation times, rather than a tested trading strategy or evidence of predictive performance; the document gives no detailed methodology for the broader market interpretations.

Key ideas

• BTC and ETH at-the-money implied volatility traded broadly sideways near 40% across maturities.
• Short-lived volatility term-structure inversions were followed by a return toward more neutral skews.
• Perpetual funding close to zero suggests diminished demand for leveraged long positions.
• The report compares volatility surfaces with the prior 30 days of hourly observations.
• The analysis is a dated market recap and does not establish predictive performance.

Tags

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