CoinDesk Podcast Network What Cryptos Are Hedge Funds Looking At? | Markets Daily
Jul 10, 2025
In this discussion, Joshua Lim, FalconX Global Co-Head of Markets, sheds light on the strikingly low implied volatility in the crypto market, revealing how it breeds complacency among investors. He highlights the influence of corporate treasury buying on crypto narratives and the shift of retail investors towards traditional equity markets. Lim also dives into evolving trading dynamics, including the rise of decentralized exchanges and the potential impact of new ETFs awaiting SEC approval, shaping the future of digital assets.
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Crypto Implied Volatility Trends
- Crypto's implied volatility is near historic lows due to speculative capital migrating away from crypto to equities.
- New corporate treasury buying provides fresh capital, balancing out old capital rotating out of crypto.
Options Selling Reinforces Range
- Market players show little appetite for leverage or expressing upside views on crypto currently.
- Selling options to generate yield causes self-reinforcing tight range-bound market behavior.
Low Volatility Risks
- Extremely low volatility with everyone short vol creates a coiled spring effect.
- A sudden Bitcoin breakout could lead to accelerated market moves due to short gamma positions.