Deribit Exchange Data Shows Ether Options Turn Bearish as Risk Premium Surpasses Bitcoin

Ether's derivatives market is showing warning signs as the cost to protect against price drops now exceeds Bitcoin's. According to Deribit, ETH's 25-delta risk reversals for August and September options are trading between -2% and -7%, signaling that put options now carry a notable premium over calls. This represents a significant shift from recent weeks when institutional investors favored ETH over BTC.

In contrast, Bitcoin's short-term put options are trading at only a 1% to 2.5% premium over calls, reflecting less concern about downside risks. The growing gap suggests traders are adjusting their portfolios amid increasing skepticism about ETH's near-term performance. Risk reversals—a key sentiment indicator combining long puts and short calls—have become a vital metric in crypto markets, similar to their traditional role in forex trading.