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
OKX (Futures) ETH-USDT-231229 -1.181 0.01 15,406,462 1,797,131 29/12/2023
Binance (Futures) ETHUSD_231229 -1.225 0.01 23,542,230 1,665,094 29/12/2023
OKX (Futures) ETH-USD-231229 -1.191 0.03 26,464,230 1,226,440 29/12/2023
Deribit ETH-29DEC23 -1.327 0.01 27,485,604 753,634 29/12/2023
Bybit (Futures) ETHUSDZ23 -1.793 0.03 0 261,323 29/12/2023
OKX (Futures) ETH-USDC-231229 -1.521 0.20 0 237,520 29/12/2023
Deribit ETH-29MAR24 -2.245 0.01 14,892,428 74,957 29/3/2024
Bybit (Futures) ETH-29MAR24 -2.630 0.11 0 15,186 29/3/2024
Bybit (Futures) ETH-29DEC23 -1.367 0.10 0 12,490 29/12/2023
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 0.011 0.01 -0.01000 5,695,425,565 455,640,175
Binance (Futures) ETHUSDT -0.006 0.01 0.01000 1,714,924,729 5,870,841,105
Bybit (Futures) ETHUSDT -0.070 0.01 0.01000 1,177,514,672 1,524,675,886
MXC (Futures) ETH_USDT -0.003 0.02 0.00827 985,385,032 150,738,726
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
Prime XBT ETH/USD 0.000 0.05 0.00000 549,166,100 133,735,162
AAX Futures ETHUSDTFP 0.371 0.09 0.24222 540,279,198 762,127,425
Deribit ETH-PERPETUAL -0.020 0.01 0.00210 516,192,249 260,461,556
Gate.io (Futures) ETH_USDT 0.027 0.01 0.01000 492,401,138 498,301,083
C-Trade ETHUSD 0.047 0.01 0.01000 486,780,315 6,657,776
BingX (Futures) ETH-USDT 0.016 0.01 0.01000 484,814,738 1,267,744,212
Bybit ETHUSDT 0.049 0.01 0.00140 458,515,321 3,066,846,994
Toobit Futures ETH-SWAP-USDT -0.005 0.01 0.01000 333,697,816 1,564,291,836
BTCEX (Futures) ETH-30SEP22 0.088 0.04 -0.00540 312,936,114 53,456,052
XT.COM (Derivatives) ETH_USDT 0.013 0.01 0.03870 273,127,276 1,466,778,897
OKEx (Futures) ETH-USDT-SWAP -0.055 0.01 0.01217 254,856,013 6,288,747,772
Binance (Futures) ETHUSD_PERP 0.019 0.01 0.01000 249,994,980 683,134,371
Bybit ETHUSD 0.029 0.01 0.01000 242,232,653 566,743,640
MEXC (Futures) ETH_USDT 0.007 0.01 0.01000 224,388,005 534,489,970
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
Bybit (Futures) ETHUSD -0.045 0.01 0.01000 203,410,989 114,767,041
CoinTR Pro (Derivatives) ETHUSDT 0.002 0.00 0.01000 194,807,909 2,002,252,739
MXC (Futures) ETH_USD 0.136 0.02 0.02000 179,583,950 6,033
Blofin ETH-USDT 0.000 0.01 0.02387 163,742,879 444,347,075
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
Phemex (Futures) ETHUSD 0.034 0.01 0.01000 125,003,027 554,076,769
BTSE (Futures) ETHPFC 0.030 0.01 0.00000 120,710,875 164,373,008
BitMEX ETHUSD -0.105 0.01 0.08720 115,519,960 70,990,951
dYdX Perpetual ETH-USD -0.076 0.01 0.00511 115,047,031 347,127,154
Hopex ETHUSDT -2.341 0.00 0.00000 113,836,893 426,064,272
MEXC Global (Futures) ETH_USDT 0.035 0.01 0.00730 104,252,740 185,078,257
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
Prime XBT ETH/BTC 0.000 0.18 0.00000 84,276,600 3,634,536
BTCEX (Futures) ETH-USDT-PERPETUAL 0.015 0.01 0.00390 68,823,022 1,730,889,989
WhiteBIT Futures ETH_PERP -0.007 0.10 0.01000 67,878,184 871,183,851
MCS ETHUSDT_QUANTO_PERP -0.446 0.07 0.01000 65,367,972 604,755
Deepcoin (Derivatives) 4ETHUSDT 0.034 0.01 0.00140 58,852,555 2,416,788,631
Bitforex (Futures) SWAP-USD-ETH -0.038 0.01 0.02293 56,517,413 317,935,292
Bitget Futures CMT_ETHUSDT 0.011 0.01 0.00022 55,647,764 238,318,674
Bitmart Futures 2 0.046 0.02 -0.04000 39,343,511 536,506,637
Bitrue (Futures) ETH-USDT 0.034 0.01 0.01010 34,573,778 1,697,447,094
Bitfinex (Futures) ETHF0:USTF0 -0.042 0.01 0.00000 29,284,970 17,738,202
HTX Futures ETH-USDT 0.039 0.01 0.01000 28,755,126 472,684,783
Huobi Futures ETH-USDT 0.032 0.01 0.00765 26,600,775 226,048,060
Phemex (Futures) ETH-PERPUSDT 0.006 0.01 0.01000 25,446,546 89,669,948
Coincatch Derivatives ETHUSDT_UMCBL 0.012 0.01 0.00940 22,206,083 328,831,067
GMX Derivatives (Arbitrum) ETH_USD 0.000 0.00 0.00000 22,070,510 23,842,481
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 0.032 0.01 -0.00750 19,424,262 12,838,158
BTSE (Futures) ETH-PERP 0.034 0.02 0.00983 18,402,454 604,855,422
Perpetual protocol ETH_USDC 0.000 0.00 -0.02000 17,280,873 0
MEXC (Futures) ETH_USD 0.002 0.01 0.01000 15,183,940 6,553
Bitget Futures ETHUSD_DMCBL_240329 -2.257 0.02 0.00000 13,437,032 448,175
ApeX Pro ETHUSDC -0.068 0.01 0.00310 12,836,900 41,004,745
Bitmart Futures ETHUSDT 0.012 0.01 0.01000 12,663,956 1,528,830,358
Deribit ETH_USDC-PERPETUAL -0.049 0.01 0.00990 11,290,936 9,362,843
RabbitX ETH-USD 0.000 0.01 0.00197 8,624,838 74,783,194
WOO X (Futures) PERP_ETH_USDT 0.004 0.02 0.01633 6,834,447 39,488,926
Phemex ETHUSD -0.173 0.11 0.07048 6,296,398 27,182,027
Hyperliquid ETH-USD -0.015 0.01 0.00267 6,246,751 21,055,172
Aevo ETH-PERP 0.000 0.05 0.00140 5,710,071 3,079,346
MUFEX ETHUSDT -0.001 0.02 0.01000 5,605,228 44,122,172
GMX Derivatives (Avalanche) ETH_USD 0.000 0.00 0.00000 4,095,660 16,098,781
Kraken (Futures) PI_ETHUSD -0.018 0.02 0.00000 3,859,795 1,373,903
Huobi Futures ETH-USD 0.077 0.01 -0.02764 3,758,250 14,279,720
Bitget Futures ETHUSD_DMCBL_231229 -0.674 0.02 0.00000 3,432,792 1,547,349
WOO Network (Futures) PERP_ETH_USDT -0.020 0.02 0.00228 3,132,868 130,835,517
MEXC Global (Futures) ETH_USD 0.053 0.01 0.01000 2,734,990 2,577
CoinEx (Futures) ETH-USDT -0.033 0.01 0.00000 2,507,989 16,740,014
HTX Futures ETH-USD 0.047 0.08 0.01000 2,482,490 15,373,818
BitZ (Futures) 2 0.002 0.11 0.00000 2,457,740 37,688,760
Perpetual Protocol ETH_USD 0.000 0.00 -0.00000 2,012,002 6,828,681
Bitget Futures ETHUSD 0.012 0.01 0.00828 1,739,689 3,036,942
Stormgain Futures ETH-PERPUSDT 0.000 0.11 0.00400 1,144,135 5,436,096
BigONE Futures ETHUSDT -0.091 0.12 0.00000 1,110,836 86,380,149
HitBTC (Derivatives) ETHUSDT_PERP 0.091 0.02 0.00276 1,109,568 4,895,185
Gemini Derivatives ETHGUSDPERP 0.017 0.02 -0.01075 1,046,624 803,461
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
Crypto.com Exchange (Futures) ETHUSD-PERP 0.000 0.01 0.00075 877,475 247,694,493
AscendEX (BitMax) (Futures) ETH-PERP 0.027 0.00 0.00300 860,498 32,613,933
Bit.com ETH-PERPETUAL -0.066 0.01 0.00000 816,811 2,844,145
Poloniex Futures ETHUSDTPERP -0.103 0.10 0.01000 765,104 2,356,394
Drift Protocol ETH-PERP 0.000 0.00 0.00254 757,079 1,146,760
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 0.015 0.01 0.01000 620,716 65,689,809
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
XT.COM (Derivatives) ETH_USD 0.044 0.01 0.01000 453,220 68,277,330
Bitget Futures ETHUSD_DMCBL_230630 0.351 0.06 0.00000 443,491 641,775
Helix (Futures) ETH/USDT PERP -0.043 0.03 0.00150 418,016 9,701,606
Gate.io (Futures) ETH_USD -1.278 0.73 0.06520 369,512 4,108
BigONE Futures ETHUSD 7.390 0.09 0.01000 301,040 5,930,788
Paradex ETH-USD-PERP -0.026 0.02 0.01950 293,782 12,746,079
BaseFEX ETHUSDT 0.193 0.11 0.01000 293,344 2,867,590
Phemex (Futures) ETH-PERPUSD -0.001 0.01 0.01000 254,909 48,716,102
CoinEx (Futures) ETH-USD 0.029 0.06 0.00147 250,560 151,164
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
Crypto.com Exchange (Futures) ETHUSD-220624 -0.045 0.06 0.00000 157,161 1,840,104
Holdstation DeFutures ETH - USD 0.000 0.00 0.00072 129,185 751,539
Powertrade (Derivatives) ETH-USD-PERPETUAL 1.727 0.04 -4.87000 110,262 2,413
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
Crypto.com Exchange (Futures) ETHUSD-220225 0.009 0.19 0.00000 63,690 59,868
Binance (Futures) ETHBUSD -0.101 0.01 0.01024 62,774 130,625,759
Orderly Network (Derivatives) ETH-PERP -0.040 0.01 0.00989 58,560 458,183
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 0.005 0.01 0.01000 37,472 936,962
Demex (Derivatives) ETH_PERP.USD 0.007 0.01 -0.00000 25,414 106,455
Bybit (Futures) ETHPERP 0.127 0.01 0.00220 11,420 3,675,047
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 -0.015 0.00 0.00000 15 23,947,434
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 -0.017 0.07 0.00000 0 3,064,195,453
Bitunix Futures ETH_USDT 0.005 0.01 -0.01300 0 1,428,668,817
BitVenus Futures ETH-SWAP-USDT 0.000 0.01 0.01986 0 1,191,156,200
CoinTiger (Futures) ETHUSDT 0.063 0.01 0.00353 0 802,107,004
Fairdesk Derivatives ETH-USDT-PERP 0.024 -0.30 0.00660 0 343,348,823
OrangeX Futures ETH-USDT-PERPETUAL 0.021 0.00 -0.00500 0 273,660,448
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
BitMake Futures ETHUSDT -0.039 0.01 0.00110 0 101,901,569
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 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
MEXC (Futures) ALT_USDT -0.877 3.86 0.04130 -72 796,070

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 -0.005 0.16 0.02163 496,515 1,566
Bitfinex (Futures) TBTCDOMF0:USTF0 0.060 0.17 -0.11774 163,844 109,181
Binance (Futures) BTCDOMUSDT -0.021 0.01 0.01000 3,768 2,547,489
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.