Crypto Derivatives Risk Appetite Hits 0.05 as Bitcoin ETF Outflows Accelerate

According to Deribit Insights' June 11 report, crypto derivatives traders pulled back sharply last week following a near-20% spot market decline, with the Block Scholes Risk Appetite Index collapsing below 0.05. The drop coincided with the longest outflow streak from spot Bitcoin ETFs since launch, signaling weakened institutional demand. BTC options skew showed some recovery—25-delta risk reversals improved to -9% from -19% five days earlier—but remain defensively positioned, indicating traders are maintaining downside hedges while awaiting stronger confirmation above $60,000.

Ethereum derivatives also showed bearish pressure, with ETH funding rates trading negative since June 5, reflecting short bias in perpetual swap markets. ETH has declined 66% from its August 2025 peak, explaining persistent market fragility despite recent price stabilization.