Crypto Derivatives 20 November 2024

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

Derivatives markets continue to reflect the bullish momentum of recent weeks. Spot yields are approaching the positive highs observed last week, signalling robust demand as traders are willing to pay a premium for leveraged long exposure via the futures contracts. Skew levels and perpetual contracts funding rates remain firmly positive, reinforcing the optimistic sentiment and indicating that market participants are seeking exposure to upwards price action. Meanwhile, implied volatility remains within a range-bound pattern, while the term structure remains inverted. Current levels of inversion have yet to surpass the heightened activity seen during the pre-election period, but remain closely linked to spot movements.

BTC SVI ATM Implied Volatility

BTC 25-Delta Risk Reversal

ETH SVI ATM Implied Volatility

ETH 25-Delta Risk Reversal

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