Apr 14, 2025: Our weekly Institutional Insights explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

 explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

Weekly highlight — Apple exemptions send crypto higher 

US president Donald Trump’s administration recently exempted smartphones, computers and other electronics from reciprocal tariffs, providing significant relief for major technology manufacturers like Apple and NVIDIA. This move, announced by US Customs and Border Protection, limits the impact of Trump’s 125% tariff on goods from China and baseline 10% global tariff affecting many countries.

The exclusions cover popular electronics, such as smartphones, laptops, hard drives and memory chips, typically not domestically produced. This decision is welcome news for consumers who feared rising prices due to potential tariffs. It also benefits major tech companies that have made substantial investment pledges in the US domestic markets to the Trump administration.

The tariff reprieve marks a noteworthy easing in Trump's trade conflict with China, effective retroactively from April 5. White House Press Secretary Karoline Leavitt emphasized that America must not depend upon China for critical technologies, highlighting the president's efforts to secure substantial investments from leading tech firms to bolster domestic manufacturing. 

However, the reprieve may be temporary. The exclusions stem from an initial order designed to prevent cumulative tariffs on specific sectors. While certain semiconductor manufacturing equipment is excluded, the announcement doesn’t cover the 20% tariff targeting China, aimed at addressing fentanyl shipments.

Analysts note that while this exemption is a win for the tech industry, uncertainty remains regarding future tariffs. The administration is poised to further investigate semiconductor imports, potentially leading to new tariffs in the coming weeks. As negotiations evolve, other countries may seek similar exceptions, complicating the trade landscape. 

Overall, while this announcement offers temporary relief, the future of tariffs remains uncertain as the administration continues its aggressive trade policies.

Weekly crypto highlight — Bitcoin has its role to play amid volatility

The concept of "safe haven" assets, traditionally represented by gold and government bonds, is being challenged in today’s volatile markets. For decades, investors relied on a classic portfolio structure of 60% equities and 40% bonds, with capital flowing into gold and government bonds during market downturns. These assets were seen as stable and reliable, ideal for safeguarding against volatility. However, in a world marked by constant market activity, geopolitical unrest and rising skepticism toward governments, the definition of a safe-haven asset may require reevaluation.

Enter Bitcoin, a highly volatile and often misunderstood asset. Despite skepticism from many investors, Bitcoin has significantly outperformed traditional safe-haven assets since the COVID-19 market lows, rising over 1,000% since March 2020. In contrast, long-duration bonds have dropped by 50%, and gold, while up 90% over five years, appears less impressive when adjusted for monetary inflation.

However, Bitcoin's status as a safe haven remains debated. During various risk-off events, it’s behaved more like a high-beta asset than a protective hedge. For instance, in March 2020, BTC fell 40%, while the Nasdaq-100 dropped 27%. But during the recent tariff-led sell-off in April 2025, Bitcoin held up better than the Nasdaq-100, suggesting emerging strength.

Non-sovereign assets like Bitcoin could thrive amid geopolitical tensions, given their decentralized, censorship-resistant nature. Traditional safe havens like gold and long-duration bonds are losing their luster, with gold’s gains overshadowed by monetary expansion and rising yields on Treasury bonds.

As Bitcoin continues to demonstrate resilience, it may challenge the notion of what constitutes a safe haven. While it may not fit the classic definition of a low-volatility asset, its durability, neutrality and liquidity make it increasingly relevant in today’s financial landscape. Thus, the traditional playbook for safe-haven assets may need an update.

Advanced

Bybit Institutional_Weekly Poster (1) (2).png

Weekly Institutional Insights: Apple exemptions send crypto higher; Bitcoin’s role to challenge gold

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.

block-scholes-x-bybit-report.jpeg

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

lombard tutorial.png

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

chainlink etf.png

Chainlink Spot ETF: A gateway to decentralized oracle investment

Bybit Learn

Investing

Staking

Like the idea of passive income? Read on as we compare yield farming vs. staking so you understand which is strategy is best for you.

As major cryptocurrencies have flirted with all-time highs this year, investors have looked toward passive income strategies as opposed to active trading. Sone example of such strategies include debating between the merits of yield farming vs. staking. Spurred in part by low interest rates in other markets, and in reaction to the risks of active trading, yield farming and staking are becoming more popular as ways to reward investors when they HODL their favorite tokens and coins.

Not satisfied with just storing their digital assets and hoping that the value will appreciate, investors have found ways to put their crypto to work. Of all the various ways of earning passive income on your crypto assets, yield farming and staking are taking center stage. Between the two strategies, which one will work best for you?

In this article, we’ll look at yield farming vs. staking in order to better understand how they work, their associated risks and benefits, and which strategy could better fit your goals.

 is a method of generating cryptocurrency from your crypto holdings. It has drawn analogies to farming because it’s an innovative way to “grow your own cryptocurrency.” The process involves lending crypto assets for interest to 

 platforms, who lock them up in a liquidity pool, essentially a smart contract for holding funds.

The funds locked in the liquidity pool provide liquidity to a DeFi protocol, where they’re used to facilitate trading, lending and borrowing. By providing liquidity, the platform earns fees that are paid out to investors according to their share of the liquidity pool. Yield farming is also known as liquidity mining.

Liquidity pools are essential for AMMs, or automated market makers. 

 offer permissionless and automated trading using liquidity pools instead of a traditional system of sellers and buyers. Liquidity provider tokens, or LP tokens, are issued to liquidity providers to track their individual contributions to the liquidity pool. 

For example, if a trader wants to exchange 

 (DAI), they pay a fee. This fee is paid to the liquidity providers in proportion to the amount of liquidity they add to the pool. The more capital provided to the liquidity pool, the higher the rewards.

As a yield farmer, you might lend digital assets such as Dai through a 

, such as Compound (COMP), which then lends coins to borrowers. Interest rates change depending on how high demand is. The interest earned accrues daily, and you get paid in new COMP coins, which can also appreciate in value. Compound (COMP) and Aave (AAVE) are a couple of the most popular DeFi protocols for yield farming which have helped popularize this section of the DeFi market.

Instead of just having your cryptocurrency stored in a wallet, you can effectively earn more crypto by yield farming. Yield farmers can earn from transaction fees, token rewards, interest, and price appreciation. Yield farming is also an inexpensive alternative to mining — since you don’t have to purchase expensive mining equipment or pay for electricity. 

More sophisticated yield farming strategies can be executed using smart contracts, or by depositing a few different tokens onto a crypto platform. A yield farming protocol typically focuses on maximizing returns, while at the same time taking liquidity and security into consideration.

 is the process of supporting a blockchain network and participating in transaction validation by committing your crypto assets to that network. It’s used by blockchain networks which use the 

 (PoS) consensus mechanism. Investors earn interest on their investments while they wait for block rewards to be released.

PoS blockchains are less energy intensive than proof of work (PoW) blockchains, such as Bitcoin, because unlike PoW networks, they don’t require massive computing power to validate new blocks. Instead, nodes — servers that process transactions — on a PoS blockchain are used to validate transactions and act as checkpoints. “Validators” are users on the network who set up nodes, are randomly chosen to sign blocks, and receive rewards for doing so. 

You might not even have to understand the technicalities of setting up a node, because crypto exchanges often allow investors to provide their crypto assets, and then the network handles the node setup and validation process. For instance, brokerages such as Binance, Coinbase and Kraken offer this service. Kraken reported in January that its customers already have more than $1 billion worth of crypto assets staked on the platform.

Since PoS consensus is based on ownership, it requires an initial setup to distribute coins fairly among the validators in order for the protocol to work correctly. This can be done through a trusted source, or via proof of burn. Once the staking has started up, and all nodes are synced with the blockchain, proof of stake becomes secure and fully decentralized.

Staking ensures a blockchain network is secure against attacks. The more stakes that are on a blockchain network, the more decentralized and secure it will be. Since stakers are rewarded for maintaining the integrity of the network, it’s possible for them to earn higher returns than those who invest in other financial markets. However, there are also risks involved in staking, since the stability of networks may fluctuate over time.

, which is an umbrella term for financial applications using blockchain networks to obviate the use of intermediaries in transactions.

For example, if you take out a bank loan now, the bank acts as an intermediary by issuing a loan. DeFi aims to remove the need to rely on such an intermediary through the use of smart contracts, which are essentially computer code that executes based on predetermined conditions. The overall goal is to reduce costs and transaction fees associated with financial products like lending, borrowing and saving. 

When it comes to staking, there are a few extra measures investors should take into account, as they’re engaging in DeFi. These include:

DeFi platforms are often more secure than traditional finance applications because they’re decentralized — and therefore less susceptible to security breaches. You can stake tokens with a variety of already established projects, such as 

. Ethereum is also transitioning from PoW to PoS validation, which means network transactions will be entirely confirmed by staking.

Yield Farming vs. Staking: What’s the Difference?

Curious about which is better suited for the average investor when deciding between yield farming vs. staking? Yield farming is very similar to staking because both require holding some amount of crypto assets to generate profits. 

Some investors consider staking to be a part of yield farming. While the terms “yield farming” and “staking” are sometimes used interchangeably, there are distinct ways in which they differ. Here are the key differences.

When looking at yield farming vs. staking, staking is often the simpler strategy for earning passive income, because investors simply decide on the staking pool and then lock in their crypto. Yield farming, on the other hand, can require a bit of work — as investors choose which tokens to lend and on which platform, with the possibility of continuously switching platforms or tokens.

Providing liquidity as a yield farmer on a 

) may require depositing a pair of coins in sufficient quantities. These can range from niche altcoins to high volume stablecoins. Rewards are then paid based on the amount of liquidity deposited. It often pays well to switch between yield farming pools constantly, though this also requires paying additional gas fees. As a result, yield farming can benefit more than staking from active management. This is how the top yield farmers go about achieving the highest possible returns. 

Ultimately, yield farming is more complex than staking — but it may also yield higher returns if you have the time, wherewithal and know-how to manage it.

Yield farming is often practiced on newly created DeFi projects, which can be highly risky if “rug pulls” occur. This term refers to shady developers intentionally draining assets from liquidity pools.

Even smart contracts built by high-quality developers can have weaknesses or bugs, which is always a risk. According to a survey, 

 don’t know how to read smart contracts — and don’t understand the associated risks.

Staking can be done with minimal initial investment, which can make staking an attractive option for users who are new to DeFi. Rug pulls are also less likely on an established PoS network.

Volatility risk is common to both yield farming and staking. Yield farmers and stakers alike can lose money when tokens suddenly drop in value. Liquidation risk also occurs when your collateral is no longer enough to cover your investment.

While yield farming offers a better yield than staking, risk-averse investors might be more inclined to consider staking when weighing yield farming vs. staking strategies. The risks can be higher since transaction fees can add up and detract from returns. The risk of asset depreciation applies to both strategies: you can lose your money if the market turns unexpectedly bearish. 

 due to fluctuations in prices from when the crypto was initially deposited. For example, if you deposit funds into a liquidity pool and then that crypto spikes in value, you would have been better off holding those tokens — rather than depositing them into the pool. You can also experience this loss if the crypto that you’re holding drops in value. Conversely, impermanent loss does not apply to staking.

Wherever there’s a risk, there can also be a reward. Just as jumping off the Eiffel Tower for that adrenaline rush might not be a good trade-off — at least, not without a parachute and a good lawyer — weighing risk and reward in financial investments is critical.

The main comparison for yield farming vs. staking is the passive income investors can gain from staying invested. The more returns received, the more that can be reinvested and grown. Albert Einstein once called compound interest the “eighth wonder of the world” because of the potential for outsized gains from this phenomenon. 

, or APY. Traditional staking on exchanges tends to have steadier APY returns when compared to yield farming. Typically, staking rewards are in the range of 5%–14%.

For example, yield farmers who get involved early with a new project or strategy can reap sizable profits. Returns can range from 1% to 1,000% APY, according to 

. However, these strategies bear higher risk. 

For investors seeking liquidity when comparing yield farming vs. staking, the winning strategy is clear. Staking offers increased returns (or APY) when investors choose to lock in their funds for prolonged periods. Yield farming, however, doesn’t require investors to lock in their funds.

PoS tokens are inflationary assets, and any yield paid to stakers is made up of new token supply. By staking your tokens, you can at least receive rewards in line with inflation, proportional to the amount staked. If you miss out on staking, the value of your existing holdings decreases — from inflation. 

For the unaware comparing yield farming vs. staking, gas fees can certainly be a significant concern for yield farmers who are free to switch between liquidity pools, but have to pay transaction fees in the process. Yield farmers need to factor in any switching costs, even if they spot a higher return on another platform.

Stakers on a network don’t have to solve computationally difficult math problems to mine rewards, as they would in a PoW blockchain network. Hence, the costs of staking upfront and maintenance are also lower.

Yield farming based on newer DeFi protocols may be more vulnerable to hackers, especially if there are glitches in a smart contract’s programming. Staking is generally more secure because stakers are participating in the underlying blockchain’s strict consensus method. Any attempt to trick the system may actually result in the perpetrators losing their staked funds.

Yield Farming vs. Staking: Which Is the Better Short-Term Investment?

For investors with a shorter time horizon and are stuck in deciding between yield farming vs. staking, both strategies have their own unique benefits.

Staking allows investors to generate rewards immediately during transaction validation. As a result, it can be a good short-term investment which reaps steady profits. For example, a staking strategy can be used for mining a PoS coin like Cardano ADA. Staking ADA offers no additional risk beyond owning Cardano.

However, the expected return and risk may be lower than with an active yield farming strategy.

On the other hand, if you need liquidity for a short-term strategy, yield farming doesn’t require a lockup of funds. You can try to generate high returns on platforms offering a high APY. As with any investment strategy, execution matters — and a bit of luck helps, too.

Yield Farming vs. Staking: Which Is the Better Long-Term Investment?

You can also use yield farming and staking as longer-term strategies to earn more income from crypto.

First, let’s take a look at yield farming, which is basically reinvesting profits back into crypto to generate interest in the form of more crypto. While yield farming may not always offer an immediate return on investment (ROI), it  doesn’t require you to lock up your money, as staking does. 

Despite the lack of an immediate payout, yield farming has the potential to be fairly lucrative over the long term. Why? Because without a lockup, you can try to jump between platforms and tokens to find the best yield. You just need to trust the network and DApp you’re using. As such, yield farming could prove to be a great way to diversify your portfolio.

Staking can be a reliable source of returns over the long term as well, especially if you’re committed to HODLing and therefore plan to keep your coins for the long haul. Whether you decide to stake or yield farm over time may depend more on how actively you’d like to manage your investments. While staking returns could turn out to be less profitable, it trumps the yield farming vs. staking comparison because the associated long-term risks are fewer. This ultimately makes the returns more stable.

Overall, we hope this comparison for yield farming vs. staking has been useful for you. Staking and yield farming are still relatively new passive income strategies when compared to approaches used in other financial markets. At times, the terms are used interchangeably, and staking may even be considered a subset of yield farming. Both approaches to earning passive income rely on holding crypto assets to earn rewards, and each strategy allows investors to share in the value of the decentralized financial ecosystem.

Staking may be more of an intuitive concept to understand, whereas yield farming can require a bit of strategic maneuvering to reap higher profits. Both products offer rates of return that can be highly attractive. Deciding between yield farming and staking depends on your level of investor sophistication, and what’s right for your portfolio. 

Yield Farming vs. Staking: Which Passive Income Strategy Is Better?

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards