Deribit Exchange Data Shows Ether Options Signaling Higher Risk Than Bitcoin

The derivatives market indicates increasing caution toward ether (ETH) compared to bitcoin (BTC). According to Deribit, insuring against ETH price drops now costs more than equivalent BTC protection, reversing recent institutional favor toward the altcoin.

Ether's 25-delta risk reversals for August and September options trade between -2% and -7%, showing put options have significantly higher premiums than calls. Meanwhile, bitcoin's short-term puts trade at just 1%-2.5% premiums, reflecting lower downside concerns. This shift suggests traders are adjusting portfolios based on evolving risk assessments.

The risk reversal metric—comparing far out-of-the-money puts versus calls—serves as a key sentiment indicator. The current ETH/BTC skew resembles patterns seen during past altcoin market contractions, where liquidity flows back to the dominant asset.