Weekly BTC and ETH Derivatives: Volatility, Skew, and Funding Signals

Summary

This weekly report surveys BTC and ETH derivatives conditions through implied volatility, futures yields, perpetual swap funding, and options skew. It describes BTC as having a less inverted implied volatility curve than ETH, whose implied volatility traded substantially higher. Short dated volatility smiles had shed much of their call skew after a selloff, without developing strong put skew or a major shift in longer expiries.

The report also notes positive futures basis and funding despite liquidations and a reduction in leverage. BTC funding remained positive but below earlier peaks, while ETH retained a more consistently bullish funding tilt. In options, BTC volatility was lower and less inverted; ETH showed a pronounced inversion, and short tenor ETH skew quickly recovered after briefly turning negative. These are weekly market observations supported by the report’s listed chart categories, not a trading system or causal study. The text does not include full chart values, entry rules, or performance tests, so signals should be read as a snapshot rather than general conclusions.

Key ideas

• ETH implied volatility was higher and more inverted than BTC implied volatility in the reported snapshot.
• Short dated call skew diminished after the selloff without a substantial shift toward put skew.
• Futures basis and perpetual funding remained positive despite liquidations and reduced leverage.
• BTC funding eased from earlier highs, while ETH funding indicated a steadier bullish tilt.
• The report summarizes market conditions but does not provide tested trading rules or performance results.

Tags

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