Bybit x Block Scholes Crypto Derivatives Analytics Report (Aug 13, 2025): ETH shy of ATH due to record institutional flows to spot ETFs
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Our weekly crypto derivatives analytics report delves into macro events; the current state of crypto and trading signals from spot trading volume; and futures, options and perpetual contracts.
ETH surged over 20% this past week, nearing its November 2021 all-time high. The rally was driven by institutional buying from firms like SharpLink Gaming and BitMine Immersion Technologies, and a record $1B inflow into ETH Spot ETFs on Aug 11, 2025. Derivatives markets are reflecting strong bullish momentum, as 7-day ETH options show a 4.8% skew toward out-of-the-money calls, perpetual swap funding rates remain positive and open interest in ETH perpetuals jumped $2B to hit August highs. ETH options sentiment flipped from a −11% skew to a nearly 5% premium for short-tenor calls, with a brief term structure inversion during the rally. Meanwhile, BTC hit a new all-time high of $124K on Aug 14, 2025, following President Trump’s executive order allowing 401(k) plans to invest in digital assets, fueling a shift in options sentiment toward upside exposure.
Please check out the report’s highlights.
ETH options volumes stay elevated and institutional demand remains strong
Sources: Bybit, Block Scholes
Ether stole the spotlight this week with a 23% rally, bringing its 30-day gain to 55% and pushing its year-to-date performance ahead of Bitcoin’s. Now trading near its 2021 all-time high, ETH’s surge is backed by institutional buying, $1B in spot ETF inflows on Aug 11, 2025 and favorable regulation driving stablecoin and tokenization activity toward Ethereum.
Despite these sharp price moves, daily ETH options volumes remain steady at $200M. However, traders continue to aggressively price short-term upside, as seen in the brief term structure inversion on Aug 10, 2025.
BTC sees a reversal in sentiment as short-term call demand increases
Sources: Bybit, Block Scholes
BTC options saw a reversal in at-the-money implied volatility this week, bottoming out at 24% on Aug 8, 2025 before spiking to 34% as BTC broke past $116K and surged to $122K. Despite the jump, short-tenor IV didn’t invert the term structure and soon dipped below 30%. A second volatility spike followed BTC’s new July ATH, with volatility smiles skewing toward out-of-the-money calls. However, sentiment briefly turned defensive as 7-day put-call skew dropped to −2.2%, reflecting increased demand for downside protection — despite spot prices holding near $122K. Since then, sentiment has shifted back toward short-tenor calls.
The week’s biggest catalyst: President Trump’s executive order allowing US retirement plans to invest in digital assets like BTC, potentially unlocking access to an $8.7T market.
ETH skews stay positive
Sources: Bybit, Block Scholes
ETH options sentiment flipped sharply bullish in August. Initially, skew hit −11% following a weak US jobs report, favoring short-tenor puts. But as ETH rallied toward its 2021 ATH of $4,878, institutional demand surged: BitMine now holds over 1M ETH, and plans to expand its equity program by $20B, while SharpLink Gaming raised $900M to buy more ETH. Meanwhile, ETH Spot ETFs added $1B on Aug 11, 2025, fueling the rally to $4,700 and pushing skew to +4.8% in favor of calls — a strong bullish signal.
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