Bitcoin options traders faced a significant expiry on July 3, with 31,000 BTC contracts settling at a notional value of approximately $1.9 billion. According to GreeksLive, the batch carried a put-call ratio of 0.7 and a maximum pain point of $61,000, underscoring the persistent demand for downside protection despite BTC reclaiming the $60,000 level earlier in the week.
Simultaneously, 135,000 Ether options expired with a notional value of $230 million, but ETH’s put-call ratio stood at a much higher 1.29, with maximum pain at $1,650. The stark contrast highlighted stronger hedging demand for Ethereum, as traders braced for potential downside around the $1,700 zone.
GreeksLive noted in a market update that BTC’s 25-delta skew remained negative across short-term maturities, with front-end contracts trading near the most defensive levels of the quarter. Readings of -11.0% for both 1-day and 7-day options and -8.0% for the 1-month contract indicated that puts continued to command a premium over calls, signaling persistent caution. “The long-term downtrend has not yet ended,” the firm cautioned, citing selling pressure from large holders and ETF outflows.
The cautious positioning comes against a backdrop of weakening spot demand. U.S. spot Bitcoin ETFs recently recorded their largest weekly outflows of 2026 at nearly $1.79 billion, and Bitcoin struggled to hold above $60,000. While softer U.S. macro expectations and easing oil prices helped risk assets recover, the rebound remained fragile.
Interestingly, the defensive options market contrasted with official volatility benchmarks. Deribit’s DVOL index, which measures 30-day expected Bitcoin volatility, tumbled to a nine-month low of 36.11 in May, far below the 50–65% range that Glassnode identifies as normal for 2025–2026. In January, the same index spiked above 44 during a sharp selloff. DVOL’s decline suggests traders are pricing in calmer conditions, yet the persistent put skew reveals that near-term fears linger.
The launch of new institutional-grade volatility products further enriched the landscape. Cboe introduced BITVX in March 2026, a VIX-style benchmark derived from options on the iShares Bitcoin Trust ETF (IBIT). On June 1, CME Group listed Bitcoin Volatility futures (BVOL) settling to the CME CF BVX index, with the first block trades executed between DV Chain and Monarq Asset Management. These instruments allow institutions to isolate volatility risk from directional exposure, a capability previously limited to over-the-counter markets.
As three competing volatility benchmarks now track different liquidity pools—Deribit options, IBIT ETF options, and CME futures options—traders watching all three may gain a crucial edge. Any divergence between DVOL and BITVX could signal structural differences between retail and institutional sentiment, especially during regime shifts from low to high volatility. For now, the $60,000 BTC support remains the market’s focal point, defended by delta exposure but threatened by hedge-driven put demand.
