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
Huobi Futures ETH_CQ -2.733 0.12 164,087,130 1,715,841,403 26/3/2021
OKEx (Futures) ETH-USD-210326 -2.800 0.10 188,762,350 1,063,256,403 26/3/2021
OKEx (Futures) ETH-USDT-210326 -2.832 0.15 3,345,840 380,524,158 26/3/2021
Binance (Futures) ETHUSD_210326 -2.661 0.11 65,649,900 373,196,663 26/3/2021
OKEx (Futures) ETH-USD-210625 -5.367 0.19 87,932,120 280,434,352 25/6/2021
OKEx (Futures) ETH-USD-210129 -0.330 0.12 23,340,240 255,974,238 29/1/2021
OKEx (Futures) ETH-USDT-210625 -4.644 0.16 1,524,610 252,296,364 25/6/2021
OKEx (Futures) ETH-USD-210205 -0.728 0.11 3,087,970 242,646,965 5/2/2021
Binance (Futures) ETHUSD_210625 -5.411 0.14 52,180,060 168,654,358 25/6/2021
Huobi Futures ETH_NQ -5.455 0.16 66,566,790 167,683,353 25/6/2021
Huobi Futures ETH_CW -0.239 0.16 15,179,930 143,028,310 29/1/2021
OKEx (Futures) ETH-USDT-210129 -0.363 0.13 512,460 127,220,951 29/1/2021
OKEx (Futures) ETH-USDT-210205 -0.787 0.19 321,040 118,916,184 5/2/2021
Huobi Futures ETH_NW -0.550 0.15 15,252,450 107,679,065 29/1/2021
Huobi Futures ETH_NW -0.574 0.12 6,481,460 86,051,117 5/2/2021
Huobi Futures ETH_NQ -2.280 0.11 44,885,370 75,386,941 26/3/2021
FTX (Derivatives) ETH-0326 -2.754 0.12 81,518,761 65,009,708 26/3/2021
Deribit ETH-26MAR21 -2.399 0.19 34,965,123 33,422,589 26/3/2021
FTX (Derivatives) ETH-0625 -5.318 0.11 27,400,331 9,950,833 25/6/2021
Deribit ETH-25JUN21 -5.006 0.26 20,176,983 6,822,956 25/6/2021
Kraken (Futures) FI_ETHUSD_210326 0.034 0.17 0 6,249,248 26/3/2021
Deribit ETH-24SEP21 -7.460 0.16 15,111,150 4,663,278 24/9/2021
FTX (Derivatives) ETH-1231 -11.473 0.46 9,428,881 4,540,502 31/12/2021
FTX (Derivatives) ETH-0924 -7.301 0.39 2,637,976 579,363 24/9/2021

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
CoinTiger (Futures) ETHUSDT -0.151 0.10 0.01518 509,846,061 678,385,024
Binance (Futures) ETHUSDT -0.193 0.10 0.01481 504,095,729 6,829,673,365
FTX (Derivatives) ETH-PERP -0.083 0.13 0.05280 327,539,655 1,820,362,613
Bybit ETHUSD -0.014 0.10 0.01000 310,703,454 1,913,042,447
Bitfinex (Futures) ETHF0:USTF0 -0.013 0.13 -0.00084 246,189,079 37,166,602
Bitfinex (Futures) TETHF0:USTF0 0.808 0.21 -0.25000 217,744,062 18,656,998
ZBG Futures ETH_USDT -0.110 0.11 0.01005 201,224,184 2,238,512
MXC (Futures) ETH_USDT -0.021 0.14 0.00700 179,639,569 281,732,693
Huobi Futures ETH-USD 0.000 0.10 0.01000 162,782,210 2,414,125,100
BitZ (Futures) ETH_USDT -0.051 0.11 0.00000 159,189,387 474,593,496
Binance (Futures) ETHUSD_PERP -0.086 0.10 0.01000 146,856,010 1,931,152,022
Hopex ETHUSDT 0.012 0.00 0.00000 123,896,423 1,474,307,600
BitMEX ETHUSD -0.376 0.10 0.04890 116,872,835 669,522,423
Bitget Futures CMT_ETHUSDT 0.035 0.12 -0.00066 99,803,391 377,557,450
BitZ (Futures) 102 0.039 0.12 0.00000 94,644,211 283,991,832
MyCoinStory ETHUSDT_QUANTO_PERP -0.320 0.00 0.06675 90,988,331 1,079,882
Deribit ETH-PERPETUAL -0.079 0.10 0.00080 86,891,542 451,183,476
OKEx (Futures) ETH-USD-SWAP -0.127 0.10 -0.00196 70,931,400 837,599,093
Bitforex (Futures) SWAP-USD-ETH -0.074 0.10 0.00200 62,956,893 1,925,811,123
Kraken (Futures) PI_ETHUSD -0.036 0.18 -0.03243 57,160,721 213,644,858
Bybit ETHUSDT -0.214 0.10 0.01000 46,854,077 247,358,289
Prime XBT ETH/USD 0.000 0.18 0.00000 23,278,910 177,004,920
Phemex (Futures) ETHUSD -0.103 0.13 0.01000 18,567,068 30,835,876
BTSE (Futures) ETHPFC -1.306 0.49 0.00000 11,560,707 39,992,336
Prime XBT ETH/BTC 0.000 0.27 0.00000 7,218,520 8,806,772
Phemex ETHUSD -0.173 0.11 0.07048 6,296,398 27,182,027
Bitget Futures ETHUSD -0.047 0.10 0.00144 5,294,350 18,049,075
BitZ (Futures) 2 0.002 0.11 0.00000 2,457,740 37,688,760
Gate.io (Futures) ETH_USD -0.389 0.00 0.06940 2,417,099 9,532,768
C-Trade ETHUSD -0.287 0.11 0.05736 2,011,091 500,373
BitZ (Futures) ETH_USD -0.049 1.04 0.00000 1,880,938 33,648,608
BitZ (Futures) 202 0.056 0.14 0.00000 947,450 151,945,180
CoinFLEX (Futures) ETH-USD-SWAP-LIN -3.831 0.17 0.00000 914,886 2,459,971
Huobi Futures ETH-USDT -0.017 0.10 0.01000 833,704 3,255,703,337
BigONE Futures ETHUSD -0.089 0.15 0.01000 746,661 72,959,265
Hopex ETHUSD 0.002 0.00 0.00000 709,930 83,991
ACDX Futures ETH-PERP -0.106 0.15 0.00000 659,015 32,513,840
Poloniex Futures ETHUSDTPERP -0.230 0.15 0.00000 382,521 3,843,315
BigONE Futures ETHUSDT -0.100 0.18 0.03260 370,830 755,537,357
AAX Futures ETHUSDFP -0.375 0.27 0.02736 367,767 14,236,432
BitZ (Futures) ETH_USDT_BZ -0.164 0.10 0.00000 333,459 56,603,898
DueDEX ETHUSDT -0.084 0.00 0.01000 303,193 410,979,797
BaseFEX ETHUSDT 0.193 0.11 0.01000 293,344 2,867,590
AAX Futures ETHUSDTFP -0.148 0.19 -0.04128 202,578 952,857
BaseFEX ETHXBT -1.643 3.08 0.01000 80,183 789,729
Biki (Futures) 4 -0.058 0.13 0.05091 0 5,571,329,082
OKEx (Futures) ETH-USDT-SWAP -0.082 0.10 0.03954 0 947,446,546
Bitget Futures CMT_ETHSUSDT 0.022 0.11 0.01554 0 327,673,863
Gate.io (Futures) ETH_USDT -0.298 0.00 0.03340 0 113,266,533
ZBG Futures ETH_USD-R -0.475 0.10 0.04932 0 28,334,332
Bibox (Futures) 4ETH_USDT 0.000 0.17 0.00000 0 14,711,034
HBTC (Futures) ETH-SWAP -0.035 0.17 0.00947 0 12,837,221
GMO Japan (Futures) ETH_JPY 0.000 0.86 0.00000 0 11,881,014
HBTC (Futures) ETH-SWAP-USDT -0.021 0.17 0.00940 0 9,431,113
Stormgain Futures ETH-PERPUSDT 0.000 0.17 0.00400 0 4,405,739
ZBG Futures ETH_USD-R20190927 0.000 0.19 0.00000 0 2,922,578
BHEX (Futures) ETH-SWAP 0.003 0.20 0.00331 0 1,390,009
Delta Exchange ETHUSDT -0.266 0.10 0.01000 0 1,380,128
Delta Exchange ETHBTC -0.037 0.10 0.01000 0 1,119,329
Bitfinex (Futures) TETHF0:BTCF0 0.559 0.11 -0.25000 0 779,083
Bitfinex (Futures) ETHF0:BTCF0 -0.400 0.15 -0.09274 0 493,961
MCDEX RQBAP 0.112 0.18 0.03741 0 449,127
MXC (Futures) ETH_USD 0.049 0.10 -0.02000 0 271,648
Binance JEX (Futures) ETHUSDT -2.975 0.62 0.01000 0 36,626
MCDEX ETH-PERP -0.594 0.66 -0.20350 0 28,601
Biki (Futures) 5 -0.042 0.15 0.00809 0 199

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.

Exchange Symbol Premium (-)
Discount (+)
Spread Open Intrest 24h Volume Expiry Date
FTX (Derivatives) ALT-0326 -0.064 0.35 1,849,674 1,930,241 26/3/2021
BTSE (Futures) BBAXH21 -0.469 0.28 31,939 34,776 26/3/2021
BTSE (Futures) BBAXF21 -0.637 0.60 33,259 22,263 29/1/2021
BTSE (Futures) BBCXF21 -1.650 1.25 198 19,932 29/1/2021
BTSE (Futures) BBCXH21 -0.843 1.24 691 18,988 26/3/2021

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 0.078 0.20 0.01680 12,466,384 13,187,241
Gate.io (Futures) ALT_USDT -3.246 0.00 0.01000 2 1,634

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
Bitfinex (Futures) BTCDOMF0:USTF0 -0.007 0.12 0.00000 180,766 2,748
Bitfinex (Futures) TBTCDOMF0:USTF0 0.060 0.17 -0.11774 163,844 109,181
BTSE (Futures) BDIPFC 0.142 0.85 0.00000 7,095 66,145

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.