How to hedge Ethereum

ETH is Ethereum token.

As ETH is a volatile asset, in certain instances it will require hedging.

The best method of hedging ETH is to use crypto derivatives.
There are multiple of the exchanges serving futures and perpetual swaps.

Choose from the list of hedging options

Ethereum Futures

When required to hedge the position for the mid-term period (weeks to months) you can use futures.

Exchange Symbol Premium (-)
Discount (+)		 Spread Open Intrest 24h Volume Expiry Date
Deribit ETH-28JUN24 -3.455 0.04 5,028,770 5,719 28/6/2024

Ethereum Perpetual Swaps

Short position for indefinite time is also possible by using perpetual.
Moreover you can earn swaps in particular cases.

Exchange Symbol Premium (-)
Discount (+)		 Spread Funding Rate Open Intrest 24h Volume
Deepcoin (Derivatives) ETHUSDT 0.040 0.01 -0.03514 8,998,179,546 523,118,249
CoinW (Futures) ETH/USDT 0.015 0.01 0.00933 2,540,146,916 8,487,315,502
Binance (Futures) ETHUSDT 0.121 0.01 0.00932 2,272,841,116 7,154,289,433
Bybit (Futures) ETHUSDT 0.045 0.01 0.01000 1,732,128,878 1,971,179,807
MXC (Futures) ETH_USDT -0.003 0.02 0.00827 985,385,032 150,738,726
Toobit Futures ETH-SWAP-USDT 0.051 0.01 0.00957 846,509,099 4,101,486,729
Binance (Futures) ETHUSD_PERP -0.049 0.01 0.01000 806,034,910 947,189,817
FTX (Derivatives) ETH-PERP -0.617 0.02 0.40560 792,303,620 3,495,077,764
C-Trade ETHUSDT 0.043 0.02 0.00000 789,703,189 33,658,810
Gate.io (Futures) ETH_USDT 0.136 0.01 -0.00770 672,411,107 682,661,709
BingX (Futures) ETH-USDT 0.046 0.01 0.01000 661,671,137 1,102,297,702
Blofin ETH-USDT 0.000 0.01 0.01495 640,543,457 683,136,571
Deribit ETH-PERPETUAL -0.039 0.01 0.00260 580,825,606 303,692,691
AAX Futures ETHUSDTFP 0.371 0.09 0.24222 540,279,198 762,127,425
XT.COM (Derivatives) ETH_USDT 0.049 0.01 -0.01920 501,821,685 3,494,998,022
C-Trade ETHUSD 0.047 0.01 0.01000 486,780,315 6,657,776
Bybit ETHUSDT 0.049 0.01 0.00140 458,515,321 3,066,846,994
BitVenus Futures ETH-SWAP-USDT 0.001 0.01 -0.00116 424,979,246 1,426,924,433
CoinTR Pro (Derivatives) ETHUSDT 0.017 0.00 0.00340 342,227,560 270,703,599
BTCEX (Futures) ETH-30SEP22 0.088 0.04 -0.00540 312,936,114 53,456,052
Bybit (Futures) ETHUSD 0.052 0.01 0.01000 310,180,547 117,471,283
OKEx (Futures) ETH-USDT-SWAP -0.055 0.01 0.01217 254,856,013 6,288,747,772
Bybit ETHUSD 0.029 0.01 0.01000 242,232,653 566,743,640
BYDfi (Futures) ETH-PERPUSDT 0.039 0.01 0.01116 230,382,665 859,662,300
Bitfinex (Futures) TETHF0:USTF0 0.808 0.21 -0.25000 217,744,062 18,656,998
MyCoinStory ETHUSDT_QUANTO_PERP -0.157 0.00 0.04260 211,528,234 2,231,119
MEXC (Futures) ETH_USDT 0.041 0.01 0.00930 208,768,875 213,568,687
Bitunix Futures ETH_USDT 0.033 0.01 0.00901 185,389,793 1,349,043,250
MXC (Futures) ETH_USD 0.136 0.02 0.02000 179,583,950 6,033
OKEx (Futures) ETH-USD-SWAP -0.031 0.01 -0.02141 151,636,920 546,197,796
BTCEX (Futures) ETH-24JUN22 0.369 0.04 0.01000 140,877,096 66,467,431
Hyperliquid ETH-USD -0.113 0.01 0.00125 131,358,268 236,278,058
Phemex (Futures) ETHUSD 0.034 0.01 0.01000 125,003,027 554,076,769
Coincatch Derivatives ETHUSDT_UMCBL 0.053 0.01 0.00930 121,882,171 3,355,723,983
BTSE (Futures) ETHPFC 0.030 0.01 0.00000 120,710,875 164,373,008
dYdX Perpetual ETH-USD -0.123 0.01 0.00595 116,901,224 109,553,649
BitMEX ETHUSD -0.105 0.01 0.08720 115,519,960 70,990,951
Hopex ETHUSDT -2.341 0.00 0.00000 113,836,893 426,064,272
Crypto.com Exchange (Futures) ETHUSD-PERP 0.013 0.01 0.00032 106,449,247 571,387,556
MEXC Global (Futures) ETH_USDT 0.035 0.01 0.00730 104,252,740 185,078,257
Prime XBT ETH/USD 0.000 0.03 0.00000 103,435,900 9,988,669
BitZ (Futures) 102 0.039 0.12 0.00000 94,644,211 283,991,832
ZBG Futures ETH_USDT 0.057 0.03 -0.01359 93,323,046 532,011
dYdX Perpetual (Ethereum) ETH-USD -0.039 0.01 0.00397 91,810,851 163,829,664
WhiteBIT Futures ETH_PERP 0.057 0.02 0.01000 78,462,539 90,838,271
Prime XBT ETH/BTC 0.000 0.19 0.00000 76,585,200 3,757,588
Bitforex (Futures) SWAP-USD-ETH -0.015 0.01 0.01882 73,479,095 337,849,795
BTCEX (Futures) ETH-USDT-PERPETUAL 0.015 0.01 0.00390 68,823,022 1,730,889,989
AscendEX (BitMax) (Futures) ETH-PERP -0.080 0.00 0.02400 67,590,816 1,031,024,158
MCS ETHUSDT_QUANTO_PERP -0.446 0.07 0.01000 65,367,972 604,755
Coincall ETH-USD 0.045 0.01 0.01000 65,266,590 39,409,552
Deepcoin (Derivatives) 4ETHUSDT 0.034 0.01 0.00140 58,852,555 2,416,788,631
Bitget Futures CMT_ETHUSDT 0.011 0.01 0.00022 55,647,764 238,318,674
Bitmart Futures ETHUSDT 0.066 0.02 0.00930 44,530,546 2,312,705,977
dYdX Chain ETH-USD 0.139 0.00 0.00123 42,281,722 246,568,235
Bitmart Futures 2 0.046 0.02 -0.04000 39,343,511 536,506,637
HTX Futures ETH-USDT 0.056 0.01 0.00204 36,840,782 519,644,713
dYdX Chain (Cosmos) ETH-USD -0.009 0.00 0.00332 34,802,214 241,257,887
Bitfinex (Futures) ETHF0:USTF0 -0.027 0.01 0.00000 34,433,678 12,199,368
Bybit (Futures) ETHPERP 0.163 0.01 0.01000 31,985,880 15,644,330
Huobi Futures ETH-USDT 0.032 0.01 0.00765 26,600,775 226,048,060
BitMake Futures ETHUSDT 0.008 0.01 0.00000 26,082,367 299,102,254
BTSE (Futures) ETH-PERP -0.042 0.01 0.00930 25,524,402 786,866,541
Phemex (Futures) ETH-PERPUSDT 0.038 0.01 0.00922 23,871,036 52,644,768
BTCEX (Futures) ETH-31MAR23 0.439 0.02 -0.00930 21,698,099 30,968,384
BTCEX (Futures) ETH-30DEC22 0.375 0.01 -0.00930 21,698,099 28,686,834
BitZ (Futures) ETH_USDT_BZ 0.090 0.14 0.00000 21,528,099 1,004,554,589
Coincatch Derivatives ETHUSD_DMCBL -0.021 0.02 0.03390 20,256,025 816,064,496
Bitrue (Futures) ETH-USDT 0.049 0.01 0.00955 19,371,345 2,130,942,406
GMX Derivatives (Arbitrum) ETH_USD 0.000 0.00 0.00000 17,519,214 8,726,253
Perpetual protocol ETH_USDC 0.000 0.00 -0.02000 17,280,873 0
MEXC (Futures) ETH_USD 0.027 0.01 0.01000 16,693,590 4,355
DexToro ETH-PERP -0.018 0.00 -4.19472 15,370,336 14,798
ApeX Pro ETHUSDC -0.161 0.01 0.00125 14,308,589 23,192,964
XT.COM (Derivatives) ETH_USD -0.019 0.01 0.02030 12,993,990 93,484,220
Aevo ETH-PERP 0.000 0.01 0.00610 12,358,535 69,834,093
HTX Futures ETH-USD -0.013 0.05 0.01000 12,302,630 18,439,466
RabbitX ETH-USD -0.009 0.01 0.00319 12,086,400 88,918,144
Bitget Futures ETHUSD_DMCBL_240329 -1.305 0.02 0.00000 8,484,862 628,047
Deribit ETH_USDC-PERPETUAL -0.038 0.02 0.00630 8,276,307 11,454,552
OX.FUN ETH-USD-SWAP-LIN -0.609 0.08 0.00000 8,237,787 4,817,768
Drift Protocol ETH-PERP 0.000 0.00 0.00241 7,976,898 5,289,685
WOO X (Futures) PERP_ETH_USDT -0.022 0.01 0.00968 7,653,264 54,713,429
GMX Derivatives (Avalanche) ETH_USD 0.000 0.00 0.00000 7,520,064 800,354
Phemex ETHUSD -0.173 0.11 0.07048 6,296,398 27,182,027
CoinEx (Futures) ETH-USDT -0.034 0.01 0.00000 5,828,528 50,324,992
Kraken (Futures) PI_ETHUSD 0.087 0.14 0.00000 5,557,242 2,292,059
Bitget Futures ETHUSD_DMCBL_240628 -5.122 0.10 0.00000 5,329,048 800,662
Bitget Futures ETHUSD_DMCBL_231229 -0.506 0.02 0.00000 4,981,260 563,950
ApeX Pro ETHUSDT -0.081 0.02 0.00125 4,781,069 31,460,223
MUFEX ETHUSDT 0.059 0.01 0.01000 4,775,875 281,385,629
Stormgain Futures ETH-PERPUSDT 0.000 0.11 0.00400 4,336,275 4,439,494
Huobi Futures ETH-USD 0.077 0.01 -0.02764 3,758,250 14,279,720
WOO Network (Futures) PERP_ETH_USDT -0.020 0.02 0.00228 3,132,868 130,835,517
Kine Protocol (Derivatives) ETH-PERP 0.000 0.00 0.03120 2,894,848 112,967,104
MEXC Global (Futures) ETH_USD 0.053 0.01 0.01000 2,734,990 2,577
BitZ (Futures) 2 0.002 0.11 0.00000 2,457,740 37,688,760
Orderly Network (Derivatives) ETH-PERP -0.049 0.01 0.04904 2,444,480 132,809,675
Gemini Derivatives ETHGUSDPERP -0.065 0.01 0.07464 2,151,867 1,420,852
Perpetual Protocol ETH_USD 0.000 0.00 0.00004 2,074,424 21,617,416
Helix (Futures) ETH/USDT PERP 0.055 0.02 0.00520 2,021,308 29,715,650
Bitget Futures ETHUSD 0.012 0.01 0.00828 1,739,689 3,036,942
HitBTC (Derivatives) ETHUSDT_PERP 0.061 0.01 -0.00039 1,143,024 3,760,831
BigONE Futures ETHUSDT -0.091 0.12 0.00000 1,110,836 86,380,149
BitZ (Futures) ETH_USDT -0.001 0.02 0.00000 953,638 4,506,852
BitZ (Futures) 202 0.056 0.14 0.00000 947,450 151,945,180
ZB (Derivatives) ETH_USDT 0.040 0.03 -0.01680 906,341 1,223,296,478
Bit.com ETH-PERPETUAL -0.066 0.01 0.00000 816,811 2,844,145
Poloniex Futures ETHUSDTPERP -0.006 0.10 0.01000 678,894 3,384,046
Bitget Futures ETHUSD_DMCBL_221230 -0.379 0.03 0.00000 652,261 555,795
Opnx Derivatives ETH-USDT-SWAP-LIN -0.151 0.00 0.00007 623,068 13,813,226
Phemex (Futures) ETH-PERP 0.036 0.01 0.01000 598,658 56,160,598
Mango Markets (Derivatives) ETH-PERP -0.137 0.09 0.00166 533,216 16,537
Bit.com (Futures) ETH-PERPETUAL 0.002 0.02 0.00000 505,443 6,767,821
Hopex ETHUSD -9.752 0.00 0.00000 502,740 14,200,156
Bitget Futures ETHUSD_DMCBL_230630 0.351 0.06 0.00000 443,491 641,775
Gate.io (Futures) ETH_USD -0.093 0.74 0.01000 380,556 2,055
Paradex ETH-USD-PERP 0.030 0.01 0.00897 347,873 11,716,356
BigONE Futures ETHUSD 7.390 0.09 0.01000 301,040 5,930,788
BaseFEX ETHUSDT 0.193 0.11 0.01000 293,344 2,867,590
CoinEx (Futures) ETH-USD -0.046 0.04 0.01902 252,656 102,700
Phemex (Futures) ETH-PERPUSD 0.033 0.01 -0.00515 249,839 56,711,790
Crypto.com Exchange (Futures) ETHUSD-220325 0.085 0.09 0.00000 200,695 187,350
ZB (Derivatives) ETH_QC -0.075 0.11 0.01000 163,121 16,494,457
Holdstation DeFutures ETH - USD 0.000 0.00 0.00070 160,916 232,520
Crypto.com Exchange (Futures) ETHUSD-220624 -0.045 0.06 0.00000 157,161 1,840,104
Powertrade (Derivatives) ETH-USD-PERPETUAL -0.107 0.04 -0.70000 115,683 627
BaseFEX ETHXBT -1.643 3.08 0.01000 80,183 789,729
Bitget Futures ETHUSD_DMCBL_230331 -1.108 0.03 0.00000 71,831 524,825
Bit.com (Futures) ETH-USDT-PERPETUAL -0.064 0.09 0.00000 70,871 76,503
Crypto.com Exchange (Futures) ETHUSD-220930 -1.053 0.04 0.00000 67,170 47,348
Demex (Derivatives) ETH_PERP.USD 0.018 0.01 0.00001 65,272 95,866
Crypto.com Exchange (Futures) ETHUSD-220225 0.009 0.19 0.00000 63,690 59,868
Binance (Futures) ETHBUSD -0.069 0.01 0.02129 62,302 82,787,302
MCDEX (Arbitrum) ETH-USDC -1.512 0.64 -0.01611 52,386 103
BitZ (Futures) ETH_USD -0.001 0.10 0.00000 52,056 304,510
MCDEX (BSC) ETH-BUSD 0.000 0.74 0.02124 48,636 370
Crypto.com Exchange (Futures) ETHUSD-211231 0.018 0.04 0.00000 42,287 15,009
Bitmart Futures ETHUSD 0.037 0.02 0.01000 36,821 709,168
Crypto.com Exchange (Futures) ETHUSD-220429 -0.029 0.10 0.00000 3,827 3,911
Crypto.com Exchange (Futures) ETHUSD-220128 0.118 0.20 0.00000 3,821 4,219
Crypto.com Exchange (Futures) ETHUSD-220729 -0.410 0.09 0.00000 2,159 1,398
Crypto.com Exchange (Futures) ETHUSD-220527 -0.147 0.07 0.00000 2,152 1,851
ACDX Futures ETH-PERP -4.708 0.06 0.00000 705 355,876
Bit.com (Futures) USD-M:ETH-USD-PERPETUAL -0.006 0.06 0.00000 373 200,428,368
Bitget Futures ETHUSD_DMCBL_230929 0.117 0.05 0.00000 330 464,888
AAX Futures ETHUSDFP -0.423 0.03 0.01051 212 203
MCDEX (BSC) USD-ETH 0.594 0.02 0.00039 89 1
Opnx Derivatives ETH-OUSD-SWAP-LIN -0.029 0.00 0.00001 17 30,279,978
BIT (Futures) USD-M:ETH-USD-PERPETUAL 0.213 0.06 0.01000 3 4,849,232
Stormgain Futures ETH-PERPBTC 0.000 0.31 0.00400 0 13,041
BTCC Futures ETHUSDT -0.007 0.07 0.00000 0 3,353,295,376
CoinTiger (Futures) ETHUSDT 0.063 0.01 0.00353 0 802,107,004
Fairdesk Derivatives ETH-USDT-PERP 0.022 -0.35 0.00120 0 369,862,405
OrangeX Futures ETH-USDT-PERPETUAL 0.036 0.00 -0.00500 0 269,922,103
Biki (Futures) 4 -4.599 0.02 -0.03451 0 208,609,701
BTCEX (Futures) ETH-25MAR22 -0.282 0.02 0.01000 0 117,199,246
Bitget Futures CMT_ETHSUSDT 0.034 0.12 -0.00016 0 116,738,791
Deepcoin (Derivatives) ETHUSD 0.044 0.02 -0.01173 0 48,416,376
BTCMEX ETHUSDT 0.055 0.00 0.01000 0 43,663,073
Injective Exchange (Futures) ETH/USDT PERP -3.321 0.09 0.00000 0 31,952,646
Flipster ETH-USDT.PERP 0.016 0.02 0.01000 0 30,914,731
Toobit Derivatives ETH-SWAP-USDT 0.031 0.01 0.01000 0 19,840,402
Binance (Futures) ETHUSDT_210326 -5.274 0.25 0.00000 0 17,670,699
ZBG Futures ETH_USD-R 0.126 0.01 -0.03722 0 6,429,425
HBTC (Futures) ETH-SWAP 0.457 0.10 -0.03984 0 5,631,154
Delta Exchange ETHUSDT -0.228 0.01 0.08250 0 4,483,123
Globe (Derivatives) ETH-PERP 0.035 0.04 0.00000 0 4,294,208
Bitget Futures ETHPERP_CMCBL -0.015 0.01 0.01000 0 3,649,192
Crypto.com (Futures) ETHUSD-PERP 0.000 0.05 0.00000 0 3,644,318
ZBG Futures ETH_USD-R20190927 0.000 0.19 0.00000 0 2,922,578
MEXC Global (Futures) ETH_MUSDT -0.045 94.74 0.00000 0 2,115,493
MCDEX 00001 0.000 0.00 0.00000 0 1,822,608
Bitfinex (Futures) ETHF0:BTCF0 -0.002 0.01 0.00000 0 1,445,334
Delta Exchange ETHBTC -0.223 0.02 0.01000 0 1,295,656
Bibox (Futures) 4ETH_USDT 0.000 0.01 0.00000 0 1,288,672
AQX (Derivatives) ETH-USDT.PERP 0.010 0.02 0.01000 0 1,095,160
GMO Japan (Futures) ETH_JPY 0.000 0.08 0.00000 0 1,031,443
Bitfinex (Futures) TETHF0:BTCF0 0.559 0.11 -0.25000 0 779,083
HBTC (Futures) ETH-SWAP-USDT 0.069 1.73 0.05189 0 663,148
OKX (Futures) ETH-USDC-SWAP 0.007 0.02 -0.00751 0 615,456
MCDEX ETH-USDC 0.000 0.24 0.15450 0 502,913
MCDEX RQBAP 0.112 0.18 0.03741 0 449,127
Crypto.com Exchange (Futures) ETHUSD-210924 0.035 0.08 0.00000 0 391,068
Bitmart Futures 32896 0.056 0.01 0.03000 0 210,332
Demex (Derivatives) ETH_PERP.USD-CMKT/117 0.017 0.08 0.00034 0 132,861
MCDEX ETH-PERP -6.764 0.29 -0.03509 0 110,000
CoinFLEX (Futures) ETH-USD-SWAP-LIN 0.000 64.88 0.00000 0 47,045
BHEX (Futures) ETH-SWAP-USDT -0.026 0.15 -0.00061 0 42,901
BHEX (Futures) ETH-SWAP -0.012 0.03 0.03051 0 38,643
Crypto.com Exchange (Futures) ETHUSD-211126 0.037 0.09 0.00000 0 37,403
Demex (Derivatives) CMKT/117 -0.149 0.39 0.00000 0 35,865
CoinEx (Futures) ETH-USDC 0.428 0.08 0.53343 0 30,292
Helix (Futures) ETH/USDT 19SEP22 -0.012 0.08 0.00000 0 29,716
Injective Pro (Futures) ETH/USDT PERP 1.358 0.01 0.00040 0 25,513
Alpha5 ETHUSDT -4.824 0.20 -0.00077 0 11,274
Binance JEX (Futures) ETHUSDT 1.791 0.21 0.01000 0 11,130
Bitfinex (Futures) ETHF0:EUTF0 0.213 0.05 0.25000 0 903
DueDEX ETHUSDT -0.979 0.00 0.01000 0 636
Futureswap ETH-USD 0.959 0.00 0.00000 0 231
MCDEX (BSC) ETH-USX 0.000 0.00 0.00000 0 170
EQONEX (Perpetual) 29 -1.306 34.88 -5.88169 0 16
MCDEX 10017 0.000 0.00 0.00000 0 8
Biki (Futures) 5 -0.187 0.11 0.00526 0 2
MCDEX 10015 0.000 0.00 0.00000 0 0
Stormgain Futures ETH-PERPUSDC NaN 0.19 0.00400 0 0
Stormgain Futures ETH-PERPDAI NaN 0.11 0.00400 0 0

Future Contracts on Indexes with Ethereum embeded

Another way of hedging positions for the mid-term is using future contracts on indexes with the asset price as a component of the the index.

Unfortunatelly, no future contract on index consisting of ETH exists.

Perpetual Swaps on Indexes with Ethereum component

Sometime the best option to hedge Ethereum is to short with perpetual contract idefinitely.
Earning swaps can be in some cases crucial for the positioning.

Exchange Symbol Premium (-)
Discount (+)		 Spread Funding Rate Open Intrest 24h Volume
FTX (Derivatives) ALT-PERP -9.888 0.60 10.36560 5,825,356 8,460,075
MEXC (Futures) ALT_USDT -0.058 0.01 0.02730 2,568,124 5,809,957
MEXC Global (Futures) ALT_USDT -1.339 1.77 0.10000 45,019 441,973
Gate.io (Futures) ALT_USDT -0.060 18.68 0.01000 7 2,265
BTSE (Futures) BBAXPFC -0.277 0.41 0.00000 0 186,125
BTSE (Futures) BBCXPFC -1.309 0.59 0.00000 0 30,866

Other crypto related Indexes (Perpetual Swaps)

There are several specyfic cryptocurrencies market Indexes which can be considered as a hedge for the trading positions. As Bitcoin take the lion's share of the whole market capitalisation, BTC dominance is one of the most notable.
Even more than on other markets, Bitcoin volatility influences almost all the trading pairs traded with both BTC and altcoins at the same moment.

Exchange Symbol Premium (-)
Discount (+)		 Spread Funding Rate Open Intrest 24h Volume
BingX (Futures) BTCDOM-USDT -0.003 0.01 -0.01020 542,271 1,355,399
Bitfinex (Futures) BTCDOMF0:USTF0 0.095 0.15 -0.05461 502,413 259,229
Bitfinex (Futures) TBTCDOMF0:USTF0 0.060 0.17 -0.11774 163,844 109,181
Binance (Futures) BTCDOMUSDT 0.072 0.01 -0.02318 3,779 1,738,556
BTSE (Futures) BDIPFC -0.143 0.30 0.00000 2,482 41,193
BTSE (Futures) BTCDOMPFC 0.600 3.35 0.00000 0 5,990,922

Negative correlation with Ethereum

Check correlations with Ethereum or use a custom form to check ETH changes in correlation coefficient with other token.

Stable coins or non-crypto assets can also be considered for hedging positions.