Weekly Crypto Derivatives Review: Selloff, Curve Inversions, and Put Skew

Summary

This weekly report reviews crypto derivatives conditions during a market selloff. It tracks BTC and ETH perpetual funding, futures-implied yields, at-the-money implied volatility term structures, and option risk reversals. The narrative links falling spot prices—especially ETH’s decline against BTC—to more negative futures yields and stronger demand for short-dated out-of-the-money puts. BTC and ETH term structures are described as inverted, with some easing after the initial move.

The report also compares volatility and put-call skew across exchanges and presents several volatility surfaces and expiry smile snapshots. These sections indicate the types of measures used to monitor derivatives markets, but the text does not provide the underlying charts’ numerical series or a formal trading rule. Its observations are a time-specific market recap around an April 6 selloff; they should not be treated as a tested forecast or a general causal result. The stated relationships describe the week’s conditions, and the report offers no backtest or quantified strategy performance.

Key ideas

• The report monitors funding rates, futures-implied yields, volatility term structures, and option risk reversals.
• It associates the selloff with more negative futures yields and stronger short-tenor demand for out-of-the-money puts.
• BTC and ETH volatility term structures were described as inverted, with some subsequent easing.
• Cross-exchange volatility and skew comparisons provide additional market context.
• The recap is time-specific and does not establish a predictive strategy.

Tags

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