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

Trading

Interested in trading crypto derivatives? Check out the best crypto derivatives trading strategies to use in this article and start trading on Bybit today!

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 are a niche in the finance realm, the crypto industry has made great strides in recent years. From IPO-esque 

, plenty of TradFi elements are being adopted for crypto investors and speculators to generate extra yield. 

The latest innovation in this space is crypto derivatives. By employing crypto derivatives trading strategies, smart investors can stand to earn a tidy profit. Curious about finding out more? Scroll on as we cover everything you need to know about trading strategies for crypto derivatives.

Before diving into specific strategies, it’s important to first understand the tools available in your arsenal. On Bybit, you’ll be able to trade all kinds of crypto derivatives. These range from 

 like USDT and USDC as collateral, to inverse Perpetual and Futures contracts that use the coin or token itself as collateral. For advanced strategies, you can trade 

The best thing about derivatives trading strategies is that they're varied to suit your trading style. Check out our list below for the best derivatives trading strategies tailored for you.

: Bullish long-term investors who own the underlying asset.

 strategy comes in two parts: owning the asset and writing an out-of-the-money (OTM) call on said asset. While this neutral strategy might limit your upside, it allows investors to generate a steady flow of income in the form of call premiums. This allows long-term 

 to benefit, even when the asset's price moves sideways or drops.

How To Execute This Derivatives Strategy:

Scope out the options chain sheet and look out for calls that are expiring in a month’s time.

Depending on your risk tolerance, look out for 15% – 30% OTM calls and proceed to write one based on your underlying Spot position.

 If the call expires in-the-money (ITM), your position gets sold and you’ll earn the difference between the strike price and cost of your Spot position on top of the call’s premium.

However, if the call expires OTM, you’ll continue holding your position and you’ll earn the call’s premium.

After buying 1 ETH at $1,200, you can write a covered call by selling a 1400C contract that's expiring a month out. Based on the 

, a premium of about 1% of the ETH’s cost is credited to you. Upon expiring, if the ETH-1400C contract expires OTM, you’ll profit from the call’s premium and continue to hold the shares. If the call expires ITM, you’ll sell 1 ETH at $1,400 and pocket $200 and the call’s premium.

: Traders who want to profit from sideways trending markets and have capital to spare.

Keen on taking the Covered Call strategy one step further? Make sure to give the 

 a try. Instead of simply opening a long spot position by buying your preferred crypto underlying asset, the Wheel Strategy involves two parts: selling cash-secured puts and covered calls. 

After ensuring you have enough capital to fulfill contracts you’re assigned to, select a strike price to sell your put at. Should the put expire ITM, you can then proceed to sell covered calls for the underlying asset that’s assigned to you.

 Refer to the Options chain sheet and look for puts that are expiring in a month’s time.

 Based on your risk tolerance, write 15%–30% OTM puts based on your available capital and receive the premium credited to you.

 If the put expires OTM, you’ll profit from the premium earned and your capital can be reused for selling more OTM puts.

 If the put expires ITM, your capital gets converted into the underlying asset, with its cost price being based on your put’s strike price.

Continue to the second part of the Wheel Strategy if you’re assigned the underlying asset and sell covered calls for your assigned asset.

Sell a BTC-15000P cash-secured put that’s expiring in a month. Then, if you’re assigned BTC because the put contract expires ITM, continue to run the wheel strategy by selling a BTC-17000C covered call. If the covered call expires ITM, you’ll earn a tidy profit and have capital to now sell more cash-secured puts.

: Investors who want to protect themselves against near-term losses while still earning a profit.

A final variation that we’d like to cover is the 

. Like the Covered Call strategy, this best derivatives trading strategy excels at limiting your risk while allowing investors to stay bullish in the grand scheme of things. What’s different is that Collar Option strategies involve an extra protective put that traders buy to guard against 

 that cause the asset to massively plunge in value.

Like the Covered Call strategy mentioned above, sell an OTM call based on your risk preference.

Using the premium earned from writing the OTM call, proceed to buy an OTM put contract.

If the underlying asset’s value plunges, the OTM put will become ITM and you’ll be able to suffer minimal losses.

After buying 1 ETH and writing an OTM call, utilize the Collar Option strategy by buying an OTM ETH put. This protects you from any short-term downside while allowing you to stay bullish in the long run. Should ETH suddenly crash in value, you can then proceed to rely on this hedge to minimize your portfolio losses.

: Arbitrage traders who foresee futures being impacted by near-term catalysts.

Is a short-term catalyst weighing on the sentiment of crypto futures? Cash-and-Carry Trades are the best way to profit from this. Unlike the other best derivatives trading strategies on this list, Cash-and-Carry Trades offer a market neutral approach that minimizes volatility and guarantees risk-free profits. As an arbitrage strategy, this trade will only be viable if the short futures position exceeds the cost of the long Spot position.

 Sell a Futures contract of that same Spot asset to open a short position.

 Upon expiry, the price of the Futures contract will converge with the Spot price, allowing traders to profit when they close the short position.

Begin by buying 1 BTC and selling a BTC-JUN contract. For each position, you’d profit from the difference between the BTC Spot and Futures contract. In doing so, you’ll be exploiting the existing sentiment and profiting without exposure to any directional risk.

: Traders who expect low volatility and asset prices to trade within a range.

 combine calls and puts to ensure fixed losses and profits. Essentially, traders will buy and write an equal amount of OTM calls and puts to ensure volatility risks are accounted for while earning a guaranteed profit with each spread trade. During times of low volatility, Iron Condors excel because their multi-legged strategy guarantees high odds of profit.

 Open your Iron Condor spread by writing close to at-the-money (ATM) contracts. This is the ideal range you should aim for the asset to fall within.

 To minimize risk, buy OTM contracts to account for significant price changes.

 If the asset closes within the written contracts’ range at expiry, traders will earn maximum profit as all contracts expire worthless.

 If ETH closes beyond the range of the OTM contracts at expiry, traders will suffer maximum loss of the difference between the ATM and OTM contract. However, the bought contracts will kick in and protect traders from further losses.

Start by selling ETH-1150P and ETH-1250C, and buying ETH-1100P and ETH-1300C contracts. This will count as one Iron Condor spread. Maximum profit will be secured if ETH expires at $1,150-$1,250. On the flipside, traders will experience maximum loss when ETH expires below $1,100 or above $1,300.

We hope that this article has been helpful in educating you about the best crypto derivative trading strategies you can employ on Bybit. From the Wheel Strategy to Cash-and-Carry arbitrage trades, the sheer variety of derivatives for trade with us allows informed traders to protect their capital while maximizing opportunities for growth, regardless of market conditions and sentiment. 

Interested in learning more about how options are priced? Our definitive guide to 

 will be right up your alley. Alternatively, if you want to protect your portfolio during the bear market downturn, check out our 

5 Best Trading Strategies You Can Use to Trade Derivatives on Bybit

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Grab Up to 5,000 USDT in Rewards