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.

After initially resisting US president Trump’s “Liberation Day” tariffs, crypto markets joined the global sell-off, with BTC falling from $87K on April 2 to a low of $74K. BTC’s term structure was inverted again before easing, while ETH’s term structure remained inverted. Meanwhile, short-term BTC volatility skews favored OTM puts, reflecting more bearish sentiment than during the Q1 2023 US banking crisis. However, volatility levels decreased after Trump announced a 90-day pause on tariffs (excluding those on China), leading to a significant rally in spot prices.

Please check out the report’s highlights.

BTC open interest declined substantially this week

Bybit’s largest perpetual swap markets initially remained stable during the broader market sell-off and tariff reactions, recovering from the dip after the 

. However, Trump’s recent announcement and subsequent pause of near-unilateral import tariffs significantly impacted these markets, leading to notable declines in open interest for BTC and ETH, which have fallen sharply from their late March highs.

After a brief period of positive funding rates, BTC’s perpetual swap market fluctuated between positive and negative sentiment, indicating traders were hesitant to commit to a strong directional move (similar to trends in options markets). This changed when President Trump announced a 90-day tariff relief, leading to positive jumps in funding rates. Altcoins displayed a similar pattern, with funding rates alternately positive and negative before rising following the tariff announcement.

During the April 6–7, 2025 sell-off, traders sought downside protection, as BTC's spot price fell to $75K in reaction to President Trump’s tariff announcement. The high volume of put options relative to calls indicates strong demand for this protection. Meanwhile, the US's reciprocal tariffs caused a significant inversion in BTC’s at-the-money volatility term structure, which, although it has eased, remains inverted. Additionally, there‘s a stronger skew toward OTM puts at short tenors as compared to the March 2023 US banking crisis. Put open interest has surged over the past week, reflecting extremely bearish sentiment for both the near and long terms.

Advanced

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Bybit X Block Scholes crypto derivatives analytics report (Apr 9, 2025): Tariffs bring substantial volatility at a level similar to that of the Q1 2023 US banking crisis

In this tutorial, we’ll explore how you can stake and mint Lombard LBTCv on Bybit Web3 Staking with the Bybit Web3 Seed Phrase Wallet. 

In this tutorial, we’ll explore how you can stake BTC to mint 

Please note that in order to get started, you’ll first need to download the Bybit App on the Apple App Store or Google Play Store. 

How to stake and mint LBTCv with Bybit Web3 Staking

: Launch the Bybit App on your mobile device and tap on the 

: Deposit BTC into your preferred Bybit Web3 Seed Phrase Wallet BTC address.

: Once you’ve deposited BTC into your wallet address, tap on the 

drop-down and select the BTC address into which you’ve deposited BTC. 

: Input the exact amount of BTC you’d like to stake, and tap on 

 and sign the message to allow this exact amount of BTC to be staked.

 page. Ensure that the amount of BTC is exactly the same as you wish to stake, and tap on 

: Tap on the icon located at the upper-right corner of the screen to check your transaction history.

: You’ll receive LBTCv in three progressive stages:

: Once you’ve received LBTCv, you can check your points (updated every hour).

If you wish to stake more BTC, simply repeat Steps 7 through 12. However, please

that you won’t be able to stake more BTC as long as you haven’t yet received your LBTCv.

To redeem your LBTC, simply scroll down the 

button. Then, wait three days for the successful redemption of LBTC.

If you wish to cancel your redemption, you can do so within these three days.

Beginner

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How to stake and mint Lombard LBTCv with Bybit Web3 Staking

A Chainlink Spot ETF would bridge TradFi and crypto, offering a simplified way to gain exposure to LINK without the complexities of digital wallets or exchanges.

There's been a recent surge in spot ETF applications as investors look for ways to sidestep the rigid frameworks of traditional finance. The success of 

 — drawing billions in inflows — signals a major shift in the way institutions approach crypto investments. 

 networks, is in line for its own Spot ETF. The proposed fund promises a direct, hassle-free way to invest in Chainlink (LINK), eliminating the need to deal with complex 

 and exchanges. This article explores what a Chainlink Spot ETF is, how it would work, its current market impact and what its potential approval could mean for investors and the broader crypto landscape.

A Chainlink Spot ETF is an exchange-traded fund, backed by Chainlink (LINK) tokens, that would directly track the market price of LINK, a cryptocurrency powering decentralized oracle networks, thus enabling investors to gain exposure without directly holding the asset itself.

 (ETF) would offer investors direct exposure to LINK’s price movements without requiring the investors to handle the digital asset directly. 

Authorized Participants (APs), typically large financial institutions or market makers approved by the ETF issuer, play a central role in maintaining liquidity and aligning the ETF’s market price with its net asset value (NAV). These entities facilitate the creation and redemption of ETF shares by acquiring LINK tokens from exchanges or over-the-counter markets, and transferring them to the ETF’s custodian, a regulated entity responsible for secure storage. 

In exchange, the ETF issuer provides APs with newly created shares, which represent fractional ownership of the underlying assets. The shares are then introduced to secondary markets for investors to trade.

Creation, redemption and listing of shares

When redeeming shares, APs collect ETF shares from the market and return them to the issuer, receiving LINK tokens from the custodian in return. These tokens can be sold on the open market or held, depending upon the AP’s strategy. This creation-redemption process enables an 

 mechanism that stabilizes the ETF’s price, relative to its underlying assets. 

If the ETF is trading at a premium to NAV, APs create and sell shares to capitalize on the price difference, pushing the market price downward. Conversely, if the ETF is trading at a discount, APs redeem shares, reducing supply and driving the price upward. This dynamic ensures that the ETF’s market price remains closely tied to LINK’s actual value. 

Shares are listed on exchanges and traded like traditional stocks, integrating seamlessly into existing portfolios while offering potential tax efficiencies. The structure combines the accessibility of conventional investments with the benefits of cryptocurrency exposure, appealing to those seeking indirect participation in LINK’s market movements through a regulated and familiar framework. For investors, the ETF will simplify exposure to Chainlink by eliminating the need to manage 

 or wallets, or navigate complex crypto exchanges. 

The Hashdex Nasdaq Crypto Index US ETF, which includes Chainlink (LINK), has gained attention as a significant development in the crypto ETF space. This ETF, 

 in February 2025 and currently provides exposure to Bitcoin and Ethereum. 

 with the SEC on Mar 14, 2025 to expand the ETF's scope to include additional cryptocurrencies like LINK, ADA and SOL. This application remains the sole filing for a Spot Link ETF (as of Mar 20, 2025). While the SEC has approved the fund's initial structure, its response to the inclusion of Chainlink and other assets remains pending.

The SEC has historically been cautious about approving spot cryptocurrency ETFs, due to concerns about market manipulation and investor protection. However, the approval of multi-asset ETFs such as NCIQ signals a potential shift in regulatory attitudes. Market sentiment has been cautiously optimistic, with investors viewing these developments as a step toward broader acceptance and integration of cryptocurrencies into traditional financial systems. The timeline for the approval of Chainlink Spot ETFs remains uncertain, but growing institutional interest and regulatory advancements suggest progress in the near future.

Current impact of Chainlink Spot ETF applications on the crypto market

The anticipation surrounding Chainlink Spot ETF applications is clearly influencing market sentiment. Although Chainlink's price hasn’t yet surged dramatically, increased investor interest and speculation about potential ETF approvals have boosted overall optimism. 

Data from LINK and CoinGlass reveals that 

 have fallen to 138.8 million coins, the lowest since September 2024, indicating that investors are holding onto their tokens in self-custody wallets instead of selling. This trend reflects a growing belief that SEC approval for a Spot LINK ETF could substantially boost the token’s price. In addition, Chainlink’s role as one of the largest oracle networks and its innovative cross-chain interoperability protocol for asset tokenization further reinforce this positive outlook.

What will it mean if a Chainlink Spot ETF application is approved?

The approval of a Chainlink Spot ETF would have some significant implications for both the cryptocurrency market and traditional financial sectors, as follows.

If you’re looking to capture the market and trade LINK tokens, Bybit offers the 

A Chainlink Spot ETF would connect cryptocurrency with traditional finance by allowing investors to track LINK’s price without the complications of managing digital wallets. Specifically, it would keep the ETF's price in line with LINK’s market value, increase liquidity and attract institutional investors. Approval of a Chainlink Spot ETF could drive LINK's price higher, similar to trends seen with Bitcoin ETFs, and confirm Chainlink’s importance in the crypto ecosystem, encouraging its use across various industries. 

However, investors need to be cautious of potential short-term price swings and changes in regulations. Overall, this ETF would make crypto investing simpler for a broader audience, strengthening Chainlink’s position and supporting wider acceptance of blockchain technology in the financial world.

Intermediate

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Chainlink Spot ETF: A gateway to decentralized oracle investment

Huma Finance 2.0, a composable platform built on Solana, introduces real-world yield derived from global payment financing.

The S&P 500 fell 3.5% as renewed U.S.-China trade tensions erased gains from Trump’s tariff pause. Investors now await consumer sentiment data and bank earnings. Gold jumped 2.6% to a record $3,171 amid U.S.-China trade tensions, weaker dollar, and rising Fed rate cut bets. The Coindesk Indices, which tracks the broader crypto market, are down by 1.50%, with Bitcoin and Ether down 3.29% and 8.79% respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is ZRC, up 34.3%, followed by Zircuit's partnership with Diffuse Protocol to enhance the DeFi ecosystem with real-time data and secure cross-chain interoperability.

Zircuit (ZRC), founded in 2021, is a hybrid Layer 2 blockchain combining optimistic and ZK rollups, offering fast transactions, low costs, and strong security through AI-driven monitoring. EVM-compatible and designed for DeFi, it supports staking and asset transfers via its Liquidity Hub and secure native bridge. Zircuit has 

 with Diffuse Protocol to enhance its platform. Diffuse provides real-time verifiable data feeds, trustless cross-chain data streams, and restaking of assets with collateral abstraction, further strengthening Zircuit's AI-powered hybrid zkEVM and boosting its DeFi ecosystem.

Check out the latest prices, charts, and data of 

, a composable platform built on Solana, introduces real-world yield derived from global payment financing. The platform offers two options: Classic Mode for stable USDC yield and Maxi Mode for increased rewards through Huma Feathers. Through the $PST token, users can engage with DeFi protocols, swap tokens, and use them as collateral. Huma Finance has already processed over $3.8 billion in transactions, providing reliable yields sourced from payment-financing fees instead of market speculation. Huma 2.0 aims to bring a new liquidity model to DeFi, offering a more stable alternative to traditional financial cycles.

Yesterday, Bitcoin spot ETFs saw $149.5M in net outflows, with $44.6M from GBTC and $104.9M from other ETFs.

 has raised an additional $10M in its Series B round, bringing total funding to $35.5M with backing from a16z and other top investors. Users can boost their airdrop points by joining Towns, especially higher-priced ones, and by engaging through daily actions like tipping, inviting friends, and participating in different communities.

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Huma Finance 2.0 launches on Solana, introducing real-world yield and composable DeFi integration

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Curious to find out more about the Ethereum Shanghai upgrade and whether ETH price could soar? Read this article for more information.

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After the momentous Ethereum Merge was flawlessly executed on Sep 15, 2022, the crypto market buzzed with enthusiasm as everyone wondered what was next for 

. Supposedly, Ethereum’s post Merge upgrade schedule was supposed to go along the lines of the Surge, Verge, Purge and Splurge. Recently, Ethereum’s core developers have decided to detour from their original roadmap plans.

Titled the Ethereum Shanghai upgrade, the plan is for developers to include multiple Ethereum Improvement Proposals (EIPs) that will minimize any delays before EIP-4844 launches. Curious about the EIPs that the upcoming Shanghai upgrade will include? Here’s how it’ll change Ethereum for the better in the long run.

Alongside EIP-4895 are a couple of other EIPs that are also planned to be implemented with the Ethereum Shanghai upgrade. These include:

Ethereum developers are currently planning a Q1 release, with the Shanghai Public Testnet expected to begin in February 2023. At the current rate of development, it seems that all is going according to plan as regular updates have stated March 2023 as the target release time frame.

Why Is Everyone Talking About the Ethereum Shanghai Upgrade?

If the Ethereum Shanghai upgrade is simply a precursor to the much more important Surge upgrade, the average investor might be wondering why there’s so much buzz with regard to its launch. To understand this, it’s key to first grasp what happened in the Ethereum community after the Merge was implemented.

Prior to the implementation of EIP-4895, participating in the staking of ETH was a one-way street. In order to secure an 

 staking reward, users had to lock up their ETH for a specific amount of time. As part of the 

 process, users had to minimally stake 32 ETH to participate. 

For users with less available capital, they could opt for 

 which streamlined the staking process and opened ETH staking to the masses. As staking ETH became easy and convenient for the average retail crypto investor, this led to the rise of popular staking platforms like Stakewise, Lido and Rocket Pool.

Ultimately, staking ETH was a calculated risk; stakers could earn extra yield at the downside of lowering their liquidity and exposing themselves to the dangers of counterparty risk. Despite not being able to withdraw ETH at the time, many investors took the Ethereum Foundation’s words to heart and trusted that in due time, they would be able to withdraw their deposited ETH from the Beacon Chain.

With the Merge’s implementation, the Foundation began to publicly display a rough timeline that laid out when withdrawing ETH from the Beacon Chain would become possible. Unfortunately, somewhere down the line, these dates got shifted as developers became ambiguous about Ethereum Shanghai upgrade’s exact launch date. This became the basis of the 

 surrounding Ethereum as the Ethereum Foundation was publicly denounced for this shady, non-transparent decision.

To the relief of many ETH bulls and investors, the developers seemed to have pulled through and stuck to their originally planned timeline. The experimental testnet Shandong went live in October 2022 and quelled many 

 fears as it successfully activated selected Shanghai-related EIPs without a hitch. With staked ETH levels approaching the 16 million mark, it’s safe to say staking ETH will only become more popular over time thanks to the withdrawal flexibility implemented by the Ethereum Shanghai upgrade.

Staking is a key issue here when discussing the movement of ETH price. With the implementation of the Shanghai network upgrade, our bullish argument would be that we can expect more users to HODL and stake their ETH as adoption rises. This would drive Ethereum’s staking ratio up as users who were previously fearful because they could not withdraw their ETH can now proceed to enjoy additional yield without the downside of lower liquidity. In this regard, we can certainly expect ETH to rise in price as large-scale institutions buy and stake their ETH to earn a respectable APY of about 5% without sacrificing liquidity.

From lowered gas fees to fewer failed transactions, the upcoming Ethereum Shanghai upgrade fixes various nagging issues that have constantly affected users and developers. By getting these fixes in before the big 

 implementation, the Foundation ensures minimal delays as they prepare themselves to ship the Surge update.

On the bearish side of things, the crypto market as a whole is still not out of the woods as big institutions continue to out themselves as victims of the 

 contagion. Macroeconomic factors are also bearish as US inflation still remains far from its 2% target and the Federal Reserve continues to hike interest rates. These factors might pressure original ETH stakers from December 2020 to sell their staked ETH and gain more liquidity so the rest of their portfolio can stay afloat during the crypto bear market. 

In anticipation of this, the Ethereum Foundation has set a hard limit of about 40,000 ETH that can be unlocked each day. This will hopefully ease the selling pressure and reduce short-term ETH volatility.

Ethereum Shanghai Network Upgrade Progress

Since testnet Shandong went live in late 2022, plenty of progress for the Ethereum Shanghai network upgrade has been made. These progress updates serve to show that the Ethereum Foundation is on track with its promised March network upgrade rollout.

Firstly, the team managed to copy the blockchain and create a shadow fork to begin the initial stages of testing the new EIPs in an isolated environment. The shadow fork proved a success as it immediately revealed minor glitches with Ethereum nodes that were making use of 

The latest progress update involves news of the latest Zhejiang testnet being launched. It serves to replace the Shandong testnet. This is because when Shandong was launched, it included several EIPs involving 

 (EOF) that will not be rolled out with the Shanghai network upgrade due to time and resource constraints. 

Thus, the newest Zhejiang testnet seeks to allow for staked ETH withdrawal testing in a more accurate environment that places the Ethereum network under a similar load. Ideally, withdrawals for staked ETH should go off without a hitch as they're exposed to simulated network attacks and stress tests. According to Ethereum Foundation developer Parithosh Jayanthi, Zhejiang 

 "a great opportunity for all tools to test out how they want to collect, display and use the withdrawal information.” 

 will be made available on Feb 1, 2023. Following this, the Shanghai+Capella testnet will be triggered six days later at epoch 1350. It's when users will be able to deposit ETH to validators on the testnet, practice Boneh–Lynn–Shacham (BLS) digital signature changes and exit without incurring any risk. On top of this, you'll also be able to convert 0x00 credentials to 0x01 and set a withdrawal address as you test partial and full withdrawals when exiting your validators.

How to Profit from the Ethereum Shanghai Upgrade

Thinking of how you can profit from the near-term volatility caused by Ethereum's Shanghai upgrade? Here are our thoughts on how you can long ETH in the event that ETH prices soar:

Optimal Bullish Strategy: Stop Market Leveraged Long Order

Firm believer of our bullish ETH thesis on how more long-term ETH investors might just buy and stake ETH because of the ability to finally withdraw their deposited ETH? Then consider our strategy of utilizing a stop market leveraged long order by buying the leveraged perpetual token 

To do so, simply sign up for a Bybit account before accessing the Spot Trading platform on Bybit and locating the ETH3L token. Once you’re in the trading interface, you’ll need to change your order type to 

. This type of market order essentially helps you extract maximum short-term gains while limiting your maximum loss thanks to the 

Before inputting your price levels, it’s key to check for areas of strong buying and selling. You can then place price levels based on perceived support and resistance levels. These can vary based on your personal risk appetite as some price levels appear to be stronger than others.

Once you’ve funded your Bybit Spot Trading wallet with the necessary funds, you may proceed to input the fields present in your ETH3L leveraged token stop market order and submit the order to place your trade.

 Difference between Entry - Exit before rebalancing

 Difference between Exit - Entry + Volatility Decay + Fees

Keen on reading up more about exact strategies on how you can trade with Spot and Derivative products on Bybit? Check out our guide on 

For many ETH investors and traders, all eyes will be on its execution as the core developers seek to execute the Ethereum Shanghai upgrade in the smoothest possible manner. While this network upgrade might not be as pivotal as The Merge, it does lay the foundations for future upgrades. 

By changing the way ETH staking works, the Ethereum Shanghai upgrade will impact how retail and institutional investors interact with ETH as they consider staking viable now that withdrawals from the Beacon Chain are possible. This ultimately paints a brighter future for Ethereum as a whole as it continues to prove itself as a viable 

. Who knows; in the long haul, Ethereum might even be able to threaten Bitcoin’s top spot on the market cap list and achieve the Flippening.

Ethereum Shanghai Upgrade: Can ETH Prices Soar Again?

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