Weekly BTC and ETH Derivatives Signals Across Futures, Funding, and Options

Summary

This weekly market recap compares Bitcoin and Ether derivatives using futures implied yields, perpetual swap funding, options volatility, risk reversals, and volatility surfaces. It describes ETH yields weakening most at shorter maturities after a spot decline, while BTC yields remain broadly sideways. Funding trends diverge: demand for long exposure picks up in BTC, while ETH funding reflects relatively greater demand for shorts. Implied volatility rises for both assets, and ETH options show a stronger shift toward out-of-the-money calls than BTC options.

The report also summarizes surface and smile observations, including rising long-dated BTC upside volatility and a combination of falling short-dated ETH put volatility with rising mid-to-long-dated call volatility. Its evidence is a snapshot-based reading of market measures, with a stated 10:05 UTC snapshot convention and a 30-day hourly reference distribution for z-scores. The document gives no underlying tables or numeric readings here, so the observations cannot be independently checked from this text, and they describe a particular week rather than a tested trading strategy.

Key ideas

• ETH futures implied yields fell most at short tenors after spot prices declined.
• BTC and ETH perpetual swap funding indicated different relative demand for long and short exposure.
• Implied volatility rose for both assets, while ETH options skewed more toward out-of-the-money calls.
• BTC upside volatility gains were strongest at long maturities, while ETH showed differing moves by strike and tenor.
• The volatility z-scores compare readings with hourly observations from the prior 30 days.

Tags

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