Gate Research Institute: Market downside risks have not yet been cleared, and funds are flowing into Ethereum options to pursue long volatility strategies

ETH2,83%
BTC2,11%

PANews January 29 News, according to Gate Research Institute observations, this Friday will see approximately $9.8 billion in BTC and ETH options settle simultaneously. Currently, the implied volatility (IV) for BTC and ETH are 38% and 54%, respectively, with ETH IV dropping to a very low level of 1.6% percentile over the past year. Over the past week, BTC and ETH Skew have remained negative, indicating a dominant demand for downside protection; short-term hedging sentiment has significantly increased, while long-term risk pricing remains stable.

In terms of block trades, in the past 24 hours, the options market for BTC and ETH has mainly seen bearish spread trades; the largest structure involved selling BTC-30JAN26-85000-P, with approximately 500 BTC traded, resulting in a net premium income of about $180,000. For ETH, a long volatility strategy buying ETH-6FEB26-3150-C, with around 2,000 ETH traded, resulted in a net premium expenditure of about $90,000.

Recently, Gate launched a convenient options trading tool — Portfolio Strategy Orders, to help users efficiently respond to different market conditions such as narrow-range fluctuations, slow gains, or slow declines. This feature supports various common multi-leg options strategies like spreads and straddles, allowing users to create multi-leg options in one go and visually display the overall cost, profit and loss structure, and risk exposure in a portfolio format. Users can quickly build and manage multi-leg strategies without having to operate each leg separately, significantly reducing operational complexity and improving trading efficiency.

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