Foot off the pedal in derivatives

K33 Research Pro

For Professional and Institutional Investors

12 Aug 2024

Foot off the pedal in derivatives

Derivatives yields and leveraged exposure are nearing yearly lows as traders utilize the strong recovery to derisk with haste. Meanwhile, ETH ETF flows flip positive but reigns stagnant compared to BTC's post-launch flows.

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Volume and volatility ease up, correlation with traditional markets strengthen

Trading volume and volatility have softened since last week’s global market mayhem. Since the dust has settled, BTC has reclaimed previous range lows, with traders opting to deleverage exposure amidst the recovery. After last week’s move, correlations between BTC and the S&P 500 approach yearly highs. Facing few immediate/significant crypto catalysts, we expect heightened sensitivity to economic data, with tomorrow’s CPI numbers the first release expected to produce some volatility.

K33 Research Pro

Foot off the pedal in derivatives

Volume and volatility ease up, correlation with traditional markets strengthen

CME traders reduce exposure

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