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.
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 | -0.337 | 0.10 | 94,033,730 | 638,686,539 | 26/5/2020 |
| Huobi Futures | ETH_CQ | -2.492 | 0.10 | 170,317,510 | 577,737,604 | 25/8/2020 |
| OKEx (Futures) | ETH-USD-200925 | -2.412 | 0.00 | 131,419,360 | 234,996,810 | 25/8/2020 |
| Huobi Futures | ETH_CW | -0.209 | 0.13 | 36,005,660 | 137,744,652 | 26/5/2020 |
| Huobi Futures | ETH_CW | -0.208 | 0.10 | 14,658,870 | 134,134,949 | 7/7/2020 |
| Huobi Futures | ETH_CW | -0.029 | 0.10 | 14,314,410 | 122,456,935 | 31/6/2020 |
| Huobi Futures | ETH_CW | -0.119 | 0.10 | 8,317,290 | 108,362,806 | 12/5/2020 |
| Huobi Futures | ETH_NW | -0.204 | 0.14 | 6,724,780 | 104,078,693 | 12/5/2020 |
| Huobi Futures | ETH_CW | -0.268 | 0.10 | 17,943,880 | 97,161,952 | 14/7/2020 |
| Huobi Futures | ETH_CW | -0.094 | 0.11 | 7,726,930 | 88,395,432 | 19/5/2020 |
| Huobi Futures | ETH_CW | -0.010 | 0.12 | 10,326,520 | 86,364,807 | 10/6/2020 |
| Huobi Futures | ETH_NW | 0.024 | 0.11 | 6,564,810 | 81,044,877 | 19/5/2020 |
| Huobi Futures | ETH_CW | -0.063 | 0.10 | 8,906,350 | 78,956,745 | 24/6/2020 |
| Huobi Futures | ETH_CW | 0.082 | 0.10 | 10,074,630 | 74,269,482 | 3/6/2020 |
| OKEx (Futures) | ETH-USD-200807 | -0.114 | 0.00 | 17,228,570 | 74,003,890 | 7/7/2020 |
| Huobi Futures | ETH_CW | -0.109 | 0.10 | 6,140,400 | 70,582,654 | 5/5/2020 |
| OKEx (Futures) | ETH-USD-200626 | -0.123 | 0.00 | 40,026,910 | 68,642,390 | 26/5/2020 |
| OKEx (Futures) | ETH-USD-200731 | -0.059 | 0.00 | 15,681,260 | 67,088,660 | 31/6/2020 |
| Huobi Futures | ETH_NW | -0.610 | 0.10 | 12,606,090 | 61,761,391 | 7/7/2020 |
| Huobi Futures | ETH_NW | -0.132 | 0.10 | 7,277,860 | 54,582,133 | 3/6/2020 |
| Huobi Futures | ETH_NW | -0.062 | 0.10 | 7,411,500 | 54,434,315 | 31/6/2020 |
| Huobi Futures | ETH_CW | -0.022 | 0.10 | 11,334,730 | 52,403,124 | 17/6/2020 |
| Huobi Futures | ETH_NW | -0.433 | 0.11 | 15,207,160 | 50,108,510 | 14/7/2020 |
| OKEx (Futures) | ETH-USD-200814 | -0.215 | 0.00 | 17,869,110 | 48,134,840 | 14/7/2020 |
| Huobi Futures | ETH_NW | -0.290 | 0.10 | 54,106,850 | 45,097,621 | 26/5/2020 |
| Huobi Futures | ETH_NW | 0.161 | 0.14 | 7,519,870 | 43,693,125 | 10/6/2020 |
| OKEx (Futures) | ETH-USD-201225 | -4.092 | 0.00 | 35,128,250 | 41,811,940 | 25/11/2020 |
| OKEx (Futures) | ETH-USD-200724 | -0.133 | 0.00 | 12,485,070 | 41,741,040 | 24/6/2020 |
| Huobi Futures | ETH_NW | -0.140 | 0.10 | 9,612,690 | 39,778,999 | 17/6/2020 |
| OKEx (Futures) | ETH-USD-200612 | -0.141 | 0.00 | 10,035,220 | 36,099,360 | 12/5/2020 |
| OKEx (Futures) | ETH-USD-200821 | -0.674 | 0.00 | 5,404,090 | 34,054,890 | 21/7/2020 |
| OKEx (Futures) | ETH-USD-200605 | -0.142 | 0.00 | 9,812,300 | 33,604,890 | 5/5/2020 |
| OKEx (Futures) | ETH-USD-200710 | -0.078 | 0.00 | 11,870,460 | 32,990,260 | 10/6/2020 |
| Huobi Futures | ETH_NW | -0.110 | 0.10 | 8,750,450 | 32,370,788 | 24/6/2020 |
| OKEx (Futures) | ETH-USD-200619 | -0.059 | 0.00 | 9,522,700 | 31,871,820 | 19/5/2020 |
| OKEx (Futures) | ETH-USD-200703 | 0.047 | 0.00 | 9,152,900 | 21,859,430 | 3/6/2020 |
| Huobi Futures | ETH_NW | -0.773 | 0.12 | 8,380,590 | 16,749,402 | 21/7/2020 |
| Binance (Futures) | ETHUSD_200925 | -2.365 | 0.11 | 0 | 15,509,179 | 25/8/2020 |
| BitMEX | ETHUSDU20 | -7.339 | 0.12 | 0 | 14,817,584 | 25/8/2020 |
| Huobi Futures | ETH_NQ | -4.278 | 0.10 | 23,015,350 | 12,483,789 | 25/11/2020 |
| Huobi Futures | ETH_NQ | -2.229 | 0.15 | 6,099,160 | 10,240,686 | 19/5/2020 |
| OKEx (Futures) | ETH-USD-200717 | -0.142 | 0.00 | 11,142,220 | 9,933,350 | 17/6/2020 |
| Deribit | ETH-26JUN20 | -0.245 | 0.12 | 8,830,539 | 8,873,769 | 26/5/2020 |
| Deribit | ETH-25SEP20 | -2.177 | 0.11 | 21,425,034 | 4,508,293 | 25/8/2020 |
| BitMEX | ETHU20 | -0.889 | 0.13 | 34,301,369 | 4,496,163 | 25/8/2020 |
| FTX (Derivatives) | ETH-0626 | -0.105 | 0.13 | 3,937,460 | 3,964,218 | 26/5/2020 |
| FTX (Derivatives) | ETH-0925 | -2.879 | 0.19 | 41,731,924 | 3,322,236 | 25/8/2020 |
| BitMEX | ETHUSDM20 | -0.228 | 0.12 | 0 | 2,943,796 | 26/5/2020 |
| Deribit | ETH-25DEC20 | -3.638 | 0.11 | 12,150,979 | 1,922,303 | 25/11/2020 |
| BTSE (Futures) | ETHN20 | -0.822 | 0.42 | 144,324 | 1,577,715 | 31/6/2020 |
| BitMEX | ETHM20 | -0.079 | 0.14 | 11,452,665 | 1,232,538 | 26/5/2020 |
| BTSE (Futures) | ETHQ20 | 0.456 | 0.75 | 175,285 | 1,028,867 | 28/7/2020 |
| Kraken (Futures) | FI_ETHUSD_200731 | -0.196 | 0.14 | 0 | 827,492 | 31/6/2020 |
| Kraken (Futures) | FI_ETHUSD_200925 | -0.030 | 0.11 | 0 | 571,746 | 25/8/2020 |
| Deribit | ETH-26MAR21 | -4.382 | 0.17 | 5,443,481 | 469,317 | 26/2/2021 |
| BTSE (Futures) | ETHM20 | 0.187 | 0.45 | 316,004 | 242,193 | 26/5/2020 |
| Kraken (Futures) | FI_ETHUSD_200626 | -0.077 | 0.14 | 0 | 232,985 | 26/5/2020 |
| Kraken (Futures) | FI_ETHUSD_200828 | 0.413 | 0.11 | 0 | 232,296 | 28/7/2020 |
| Kraken (Futures) | FI_ETHUSD_201225 | 0.239 | 0.16 | 0 | 224,229 | 25/11/2020 |
| BTSE (Futures) | ETHU20 | -0.210 | 0.50 | 458,286 | 172,723 | 25/8/2020 |
| BTSE (Futures) | ETHZ20 | 0.015 | 0.95 | 195,823 | 39,358 | 25/11/2020 |
| CoinFLEX (Futures) | ETHJUN20/USDTJUN20 | 0.000 | 0.00 | 0 | 94 | |
| CoinFLEX (Futures) | ETH-USD-200925-LIN | 0.000 | 0.00 | 0 | 4 |
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 |
|---|---|---|---|---|---|---|
| BitMEX | ETHUSD | -0.046 | 0.11 | 0.04160 | 168,927,871 | 324,865,968 |
| FTX (Derivatives) | ETH-PERP | -0.110 | 0.10 | 0.00240 | 158,146,127 | 79,733,908 |
| Binance (Futures) | ETHUSDT | -0.069 | 0.10 | 0.03322 | 124,776,501 | 564,613,336 |
| Huobi Futures | ETH-USD | -0.067 | 0.10 | 0.01642 | 91,288,560 | 683,926,436 |
| Bybit | ETHUSD | -0.138 | 0.11 | 0.02480 | 70,073,650 | 161,022,085 |
| OKEx (Futures) | ETH-USD-SWAP | 0.085 | 0.00 | 0.03486 | 51,670,480 | 144,974,310 |
| Deribit | ETH-PERPETUAL | -0.036 | 0.11 | 0.00640 | 39,101,673 | 26,701,739 |
| MXC (Futures) | ETH_USDT | -0.054 | 0.11 | 0.04210 | 23,665,301 | 36,345,491 |
| BitZ (Futures) | 102 | -0.008 | 0.13 | 0.00000 | 15,640,433 | 47,060,007 |
| Kraken (Futures) | PI_ETHUSD | 0.020 | 0.11 | 0.09592 | 14,920,452 | 9,152,079 |
| BitZ (Futures) | 2 | -0.087 | 0.11 | 0.00000 | 7,493,185 | 27,102,441 |
| Bitforex (Futures) | SWAP-USD-ETH | -0.050 | 0.11 | 0.03500 | 7,108,752 | 50,999,533 |
| Phemex | ETHUSD | -0.173 | 0.11 | 0.07048 | 6,296,398 | 27,182,027 |
| Phemex (Futures) | ETHUSD | -0.161 | 0.11 | 0.04749 | 5,342,727 | 11,925,773 |
| Bitfinex (Futures) | TETHF0:USTF0 | 0.143 | 0.10 | 0.00000 | 3,714,732 | 4,545,442 |
| BTSE (Futures) | ETHPFC | 0.131 | 0.14 | 0.00000 | 2,597,059 | 1,722,865 |
| Gate.io (Futures) | ETH_USD | -0.408 | 0.00 | 0.07340 | 2,594,114 | 5,560,669 |
| BitZ (Futures) | 202 | 0.082 | 0.13 | 0.00000 | 514,622 | 18,638,048 |
| BaseFEX | ETHUSDT | 0.193 | 0.11 | 0.01000 | 293,344 | 2,867,590 |
| DueDEX | ETHUSDT | -0.043 | 0.00 | 0.01000 | 96,517 | 1,061,760 |
| BaseFEX | ETHXBT | -1.643 | 3.08 | 0.01000 | 80,183 | 789,729 |
| Biki (Futures) | 4 | -0.036 | 0.14 | -0.00014 | 0 | 217,134,694 |
| Hopex | ETHUSDT | -0.026 | 0.00 | 0.00000 | 0 | 169,941,636 |
| Prime XBT | ETH/USD | 0.000 | 0.10 | 0.00000 | 0 | 29,665,212 |
| HBTC (Futures) | ETH-SWAP-USDT | -0.061 | 0.12 | 0.00548 | 0 | 13,592,783 |
| Bibox (Futures) | 4ETH_USDT | 0.000 | 0.10 | 0.00000 | 0 | 8,289,957 |
| Delta Exchange | ETHUSDT | -0.178 | 0.11 | 0.03420 | 0 | 6,239,304 |
| HBTC (Futures) | ETH-SWAP | -0.058 | 0.12 | 0.00651 | 0 | 4,621,905 |
| ZBG Futures | ETH_USD-R | 0.000 | 0.13 | 0.00000 | 0 | 4,619,352 |
| ZBG Futures | ETH_USD-R20190927 | 0.000 | 0.19 | 0.00000 | 0 | 2,922,578 |
| ZBG Futures | ETH_USDT | 0.000 | 0.13 | 0.00000 | 0 | 2,130,409 |
| GMO Japan (Futures) | ETH_JPY | 0.000 | 0.54 | 0.00000 | 0 | 1,772,820 |
| BHEX (Futures) | ETH-SWAP | 0.003 | 0.20 | 0.00331 | 0 | 1,390,009 |
| Prime XBT | ETH/BTC | 0.000 | 0.13 | 0.00000 | 0 | 600,870 |
| Delta Exchange | ETHBTC | 0.108 | 0.19 | -0.19240 | 0 | 320,811 |
| Hopex | ETHUSD | -0.003 | 0.00 | 0.00000 | 0 | 95,674 |
| Binance JEX (Futures) | ETHUSDT | 0.555 | 0.42 | 0.01000 | 0 | 8,401 |
| Biki (Futures) | 5 | -0.028 | 0.16 | 0.00995 | 0 | 1,119 |
| CoinFLEX (Futures) | ETH-USD-SWAP-LIN | 0.000 | 0.00 | 0.00000 | 0 | 28 |
Negative correlation with Ethereum
It can be an awkward exercise to find liquid, negatively correlated altcoins in the cryptocurrency market.
The strongest negatively correlated crypto tokens (returns in USD) in a long term are:
| KNC | FTT | |
|---|---|---|
| ETH | -0.01 | -0.00 |
Check other correlations with Ethereum or use a custom form to check ETH changes in correlation coefficient with other token.
There is a group of other derivatives which can be utilized for the purpose of hedging, like crypto indexes.
Indexes can be partly correlated with Ethereum
Stable coins or non-crypto assets can also be considered for hedging positions.