TL;DR

🚀 October Highlights:

• Paradex: Vaults - The Future of On-Chain Investment Management
• Paradigm: Paradigm traded $17.2B notional and reclaimed 32% options market share

High-octane October

Momentum picked up in the crypto derivatives space in October, with $17.2B traded at Paradigm, figures not seen since the March rally. Paradigm options market share also increased to 32%. Paradex volumes were steady at $1.5B. We will recap market catalysts and key options flows thoroughly in the Markets section.

Paradex Key Performance Metrics

In the past month, Paradex recorded a Monthly ADV of $48M, with a Monthly Total Volume of $1.5B. Total fees paid amounted to $353K, while we maintained 256 active users. The Total Average Open Interest was at $22M, contributing to a Monthly TVL of $13.5M. Additionally, traders earned a total of 8.4M points.

New Market Listings

This month, we ramped up our listings to bring you even more markets while also rolling out some exciting new features. We’re getting closer to our 100-market target for the year, and here’s what’s new:

• FLOKI-USD-PERP
• BOME-USD-PERP
• POPCAT-USD-PERP
• SCR-USD-PERP
• MEW-USD-PERP
• MOODENG-USD-PERP

All Aboard the ETF Train

The market stayed range-bound during the first two weeks of October amid geopolitical tensions. Flows were mixed with some participants rolling puts while others added calls across different tenors. Sentiment then did a U-turn due to spillovers as equities climbed to fresh all-time highs. On the crypto-specific side, Mt. Gox Trustee’s decision to extend the repayment deadline by one year to October 31, 2025 also contributed, removing the supply overhang. As spot rallied, front-end skew quickly flipped from puts to calls (Chart 1).

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ETF flows were a major catalyst for the rest of the month, totalling $5.4B, a pace of inflows that matched the numbers observed after the ETFs launched in February/March (Chart 2). During the last week of the month, IBIT attracted more cash than any other ETF globally, surpassing even the behemoths IVV and VOO.

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Finally, the US election was a major theme throughout October, impacting both spot prices and volatility. Flows turned bullish and the BTC term structure ended the month with a pronounced kink (Chart 3).
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Top 10 BTC Structures on Paradigm:‍

1225x 29-Nov-24 85000 Call bought
1200x 27-Jun-25 55000/120000 +0.45… Perpetual 67,350 Bear Risk Reversal bought
1000x 11-Oct-24 62000 25-Oct-24 62000 Put Calendar bought
1000x 28-Mar-25 85000 -0.34… Perpetual 72,470 Call bought
912x 25-Oct-24 70000 Call bought
880x 27-Dec-24 80000 Call bought
880x 29-Nov-24 80000 Call bought
861x 8-Nov-24 70000/75000 Call Spread sold
850x 28-Mar-25 85000 Call bought
825x 25-Oct-24 65000 Call bought

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ETH option volumes increased but lagged behind. The market remains quite apathetic as the ETH BTC pair sold to yearly lows and the ETH volatility premium is decreasing (Chart 4). SOL volumes continue to increase.

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Top 10 ETH Structures on Paradigm:‍

35750x 11-Oct-24 2800 Call bought
23750x 18-Oct-24 2800 Call bought
17500x 8-Nov-24 2400 Call sold
15750x 11-Oct-24 2500 Call sold
11500x 11-Oct-24 2400 25-Oct-24 2400 Put Calendar sold
8500x 27-Dec-24 2300 Put bought
6800x 25-Oct-24 2500 Call bought
6500x 25-Oct-24 2650 Put bought
6250x 25-Oct-24 2500 1-Nov-24 2500 Put Calendar bought
6250x 29-Nov-24 2400 Put sold

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Top 10 SOL Structures on Paradigm:‍

28000x 8-Nov-24 220 Call sold
15000x 29-Nov-24 190 Call bought
11300x 29-Nov-24 200 Call bought
10000x 29-Nov-24 180/220 Call Spread sold
6000x 8-Nov-24 170 Put sold
5000x 29-Nov-24 90/170 Bear Risk Reversal bought
4000x 8-Nov-24 190 Call sold
4000x 8-Nov-24 180 Straddle sold
3000x 29-Nov-24 210 Call sold
2800x 25-Oct-24 165/175 Call Spread sold

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Stay informed and engaged with us through "Paradigm Edge" and "Paradex" Telegram channels — your go-to resources for navigating this ever-changing crypto derivatives landscape.

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Sincerely,
The Paradigm Team 💜