Crypto Derivatives 24 April 2025

Keep up with the latest in crypto market commentary as we share the insights from our institutional research partners.

In this edition, we share the latest crypto derivatives weekly from Block Scholes.

The recent turmoil in financial markets amounted to a relief rally as President Trump showed a willingness to negotiate a trade deal with China. That ignited a further spark in BTC’s spot price that had already been rallying even before that, pushing it past $90K. Derivatives markets have not supported the rally, however. BTC funding rates have changed wind, registering two negative spikes after positive readings for most of the month. BTC’s term structure of volatility did not invert either. ETH, which rallied harder, saw stronger support in derivative markets with short-tenor volatility smile skews spiking dramatically higher before paring back slightly.

ATM Implied Volatility, 1-Month Tenor

BTC Options

BTC SVI ATM Implied Volatility

BTC’s term structure did not invert, and now trades far steeper than ETH’s.

BTC 25-Delta Risk Reversal

Short-tenor calls see a sharp recovery in demand despite smiles across the term structure since reverting to netural.

ETH Options

ETH SVI ATM Implied Volatility

A far smaller inversion of the term structure has resolved with a fall in short-tenor volatility.

ETH 25-Delta Risk Reversal

Short-tenor volatility smile skews have spiked dramatically higher during the rally in spot prices.

Market Composite Volatility Surface

Listed Expiry Volatility Smiles

Constant Maturity Volatility Smiles

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