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

Bybit Learn

What's Happening

Bybit suffered a major hacking incident on February 21, 2025, affecting one of Bybit's Ethereum cold wallets and resulting in almost $1.5 billion in losses.

Bybit suffered a major hacking incident on Feb 21, 2025, affecting one of Bybit's Ethereum cold wallets and resulting in almost $1.5 billion in losses. The exploit is linked to the North Korean state-backed Lazarus Group.

 — Bybit conducted a routine transfer from one of our Ethereum multisig cold wallets to a warm wallet, first transferring an amount of 30,000 ETH.

 — Hackers exploited the UI of the Safe multisig cold wallet through a sophisticated phishing attack, musking the specific transaction, which resulted in the change in smart contract logic of the ETH cold wallet. This allowed hackers to transfer out the funds from the compromised cold wallet, splitting it all across 39 addresses.

Only a single Bybit cold wallet was compromised, resulting in the loss of $1.46 billion as follows:

 — Bybit's co-founder and CEO Ben Zhou 

 about the evolving situation, informing the community early on that the hackers "took control of the specific ETH cold wallet," and assuring users that Bybit is solvent and can cover the loss, ensuring client assets are backed 1:1.

 that "Bybit is Solvent even if this hack loss is not recovered, [and] all of clients' assets are 1 to 1 backed, [so] we can cover the loss."

 to explain the situation transparently to affected users.

Through a phishing attack on the Ethereum cold wallet multisig signers, the transaction and Safe UI was spoofed, allowing the hacker to change the smart contract logic of the multisig wallet. This allowed the hacker to gain control of the Bybit cold wallet, and to transfer out the funds. Our team is still investigating how the hacker was able to spoof the cold wallet, and we will release a full postmortem report shortly.

Ben stated during a livestream that there are currently no plans to purchase ETH. However, he emphasized that the company is actively seeking assistance and leveraging bridge loans from partners, in order to navigate liquidity constraints during this critical period.

Ben clarified that Bitcoin remains the primary reserve asset, and that other cold wallets remain unaffected.

Ben reassured users that all products and services are operating as usual. Withdrawals have not been halted, and continue to be processed as normal.

Bybit’s Head of Derivatives and Institutional, Shunyet Jan, confirmed during the livestream that the platform’s P2P services are functioning normally.

 — ZachXBT submitted definitive proof linking the attack to the Lazarus Group, a North Korean cybercriminal organization, and 

 the bounty from Arkham Intelligence. His analysis included test transactions, connected wallets, forensic graphs and timing details. 

 to ZachXBT, the cluster of addresses is also linked to the Phemex and BingX hack.

 40,000 ETH to Bybit, exhibiting the strong support demonstrated by industry partners and peers.

 the case to the appropriate authorities, and will provide updates as soon as further information becomes available. It actively collaborated with on-chain analytics providers in order to identify and demix the implicated addresses.

 that 99.994% of over 350,000 withdrawal requests had been processed within 10 hours following the hack, with the Bybit team working around the clock to ensure smooth operations and assure client concerns.

 that there was neither any compromise of its codebase, nor any malicious dependencies, and no other Safe addresses were affected. Following the incident, Safe has temporarily paused its {Wallet} functionality in order to conduct a thorough review of service.

 that the Bybit hack was significant, and had dealt a heavy blow to the industry. However, Bybit’s reserves still exceed its liabilities, and its user funds remain fully backed.

 that all withdrawals have been processed, and that the platform has resumed normal operations, less than 12 hours after the $1.4 billion hacking incident, the largest in the industry to date.

 — According to the latest monitoring data from 

, over $4 billion in funds have flowed into the Bybit trading platform in the past 12 hours. Comparative fund inflow analysis indicates that this capital influx has fully covered the shortfall caused by yesterday’s hack.

 on X, stating that while they have made every effort to assist, as a decentralized protocol they’re unable to fully block, freeze or redirect any funds.

 — Ben and Shunyet held a Chinese-language 

 with ETHPanda, Wu Blockchain, Bitget CEO Gracy Chen and other participants, in order to discuss the hack incident and share their insights on how to manage it.

 that Tether had frozen $181,000 USDT linked to the hack.

 approximately $4 billion in withdrawals following the surge (post-exploit). Hacken confirmed that Bybit's user funds remain fully backed, with reserves still exceeding liabilities.

 — Bybit launched a Recovery Bounty Program, with a reward of 10% of the stolen funds. To participate, contact Bybit at 

 with Crypto Town Hall, to discuss how he was handling the situation post-hack; the industry support Bybit received from peers, such as Bitget; and the way that the Bybit team was working tirelessly to handle the crisis. 

Ben also stated that rolling back Ethereum should be a community decision, rather than an individual choice, possibly through a vote.

 that the issue goes beyond Bybit or any single entity, stating, "It’s about our industry's approach to hackers." He urged eXch to reconsider and assist in blocking the outflow of funds.

 that all deposits and withdrawals have resumed to normal levels.

 — In total, $42.89 million of exploited funds were frozen, 

 of industry partners, including Tether, THORchain, ChangeNOW, FixedFloat, Avalanche, CoinEx, Bitget and Circle. Additionally, mETH Protocol recovered 15,000 cmETH tokens worth nearly $43 million.

 $1.23 billion in ETH through bridge loans, whale deposits and OTC purchases, effectively covering the ETH deficit from the exploit.

— Hacken, an independent blockchain security firm, 

 an updated proof-of-reserves (PoR) report. Bybit has fully closed the ETH gap of client assets within 72 hours, through strategic partnerships with Galaxy Digital, FalconX, Wintermute and others, along with support from Bitget, MEXC and DWF Labs. Key assets, such as BTC, ETH, SOL, USDT and USDC, exceed 100% collateral ratios. Users can read the full report 

 the launch of the LazarusBounty program — the industry-first bounty platform that specifically aims to recover funds allegedly stolen by the North Korean state-backed Lazarus Group in the Bybit exploit.

 the preliminary reports of the hack. These reports, conducted by Sygnia Labs and Verichains, both have suggested that the root cause of the hack was due to malicious JavaScript code on Safe{Wallet}'s platform, and no vulnerability was detected in Bybit's infrastructure. For more information, download the reports 

 the V1.1 update to the LazarusBounty platform, which added the following:

Bybit Security Incident: Timeline of Events and FAQs

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards