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 -1.631 0.10 108,455,440 593,692,442 25/12/2020
OKEx (Futures) ETH-USD-201225 -1.849 0.10 112,761,520 170,985,513 25/12/2020
Huobi Futures ETH_NW -0.011 0.16 6,875,610 79,670,031 30/10/2020
Huobi Futures ETH_NQ -0.493 0.14 29,717,990 74,708,211 25/12/2020
Huobi Futures ETH_CW -0.167 0.10 8,483,150 73,158,596 30/10/2020
OKEx (Futures) ETH-USDT-201225 -1.425 0.11 6,346,620 67,435,311 25/12/2020
OKEx (Futures) ETH-USD-201030 -0.134 0.11 9,822,250 44,090,043 30/10/2020
OKEx (Futures) ETH-USDT-210326 -1.904 0.12 1,467,690 40,316,901 26/3/2021
OKEx (Futures) ETH-USD-210326 -2.969 0.13 19,629,480 37,973,850 26/3/2021
Huobi Futures ETH_NW -0.265 0.13 3,782,170 37,853,248 6/11/2020
OKEx (Futures) ETH-USD-201106 -0.264 0.16 1,932,050 37,651,133 6/11/2020
Huobi Futures ETH_NQ -2.692 0.11 23,804,300 28,934,966 26/3/2021
Binance (Futures) ETHUSD_201225 -1.734 0.10 20,092,450 27,585,071 25/12/2020
OKEx (Futures) ETH-USDT-201030 -0.420 0.17 558,770 22,076,292 30/10/2020
OKEx (Futures) ETH-USDT-201106 -0.441 0.11 348,320 19,716,951 6/11/2020
Deribit ETH-25DEC20 -1.260 0.14 32,108,093 10,795,806 25/12/2020
BitMEX ETHUSDZ20 -8.040 0.13 18,828,440 9,670,187 25/12/2020
Binance (Futures) ETHUSD_210326 -3.969 0.20 6,555,420 5,080,778 26/3/2021
Kraken (Futures) FI_ETHUSD_201030 0.115 0.34 0 3,810,770 30/10/2020
FTX (Derivatives) ETH-1225 -1.353 0.17 13,474,374 3,362,747 25/12/2020
BitMEX ETHZ20 -0.659 0.13 19,263,302 3,023,971 25/12/2020
Deribit ETH-26MAR21 -2.678 0.11 9,581,172 2,833,576 26/3/2021
Deribit ETH-25JUN21 -3.090 0.41 2,192,816 1,517,275 25/6/2021
Kraken (Futures) FI_ETHUSD_201225 0.265 0.16 0 1,424,589 25/12/2020
BTSE (Futures) ETHV20 0.032 0.17 330,405 295,620 30/10/2020
BTSE (Futures) ETHZ20 0.148 0.32 452,705 134,440 25/12/2020
Kraken (Futures) FI_ETHUSD_210326 0.232 0.40 0 101,124 26/3/2021

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
Binance (Futures) ETHUSDT -0.099 0.10 0.05113 176,616,794 860,680,407
CoinTiger (Futures) ETHUSDT -0.109 0.10 0.05161 176,300,675 86,370,360
FTX (Derivatives) ETH-PERP -0.003 0.10 0.06960 113,591,117 172,371,351
Bybit ETHUSD 0.002 0.11 0.03250 110,251,522 221,692,264
Huobi Futures ETH-USD -0.048 0.10 0.01523 98,689,900 956,045,452
BitMEX ETHUSD -0.090 0.11 0.04040 84,470,310 330,470,312
OKEx (Futures) ETH-USD-SWAP -0.055 0.10 0.00722 48,744,820 141,796,952
BitZ (Futures) 102 0.027 0.12 0.00000 31,537,197 94,096,749
Deribit ETH-PERPETUAL -0.054 0.11 0.01300 28,874,377 38,236,862
MXC (Futures) ETH_USDT 0.006 0.11 -0.00510 23,822,866 69,239,861
Bitforex (Futures) SWAP-USD-ETH -0.006 0.11 0.01900 17,101,397 87,601,853
Prime XBT ETH/USD 0.000 0.24 0.00000 16,751,635 68,211,449
Binance (Futures) ETHUSD_PERP -0.123 0.10 0.02893 16,014,390 48,179,956
Hopex ETHUSDT -0.017 0.00 0.00000 13,180,109 178,171,492
Bitfinex (Futures) TETHF0:USTF0 0.063 0.10 0.00000 11,314,470 4,441,233
ZBG Futures ETH_USD-R 0.000 0.11 0.00000 8,919,677 1,341,652
Phemex (Futures) ETHUSD -0.184 0.11 0.11430 7,951,283 19,944,406
Kraken (Futures) PI_ETHUSD 0.054 0.14 0.06380 7,816,405 24,659,112
Phemex ETHUSD -0.173 0.11 0.07048 6,296,398 27,182,027
AAX Futures ETHUSDTFP -0.128 0.13 0.03000 4,650,309 10,458,702
BitZ (Futures) 2 -0.037 0.11 0.00000 4,115,646 20,600,389
Prime XBT ETH/BTC 0.000 0.31 0.00000 3,625,500 2,716,028
BTSE (Futures) ETHPFC 0.386 0.49 0.00000 3,278,665 1,652,389
Gate.io (Futures) ETH_USD -0.345 0.00 0.10380 2,113,869 3,081,460
Bybit ETHUSDT -0.034 0.11 0.01570 1,161,306 6,517,846
BitZ (Futures) 202 -0.007 0.16 0.00000 683,805 34,687,344
Hopex ETHUSD -0.005 0.00 0.00000 647,290 93,802
AAX Futures ETHUSDFP 0.024 0.14 0.03000 564,901 5,261,300
BaseFEX ETHUSDT 0.193 0.11 0.01000 293,344 2,867,590
Poloniex Futures ETHUSDTPERP 0.015 0.11 0.01840 201,972 2,328,896
BaseFEX ETHXBT -1.643 3.08 0.01000 80,183 789,729
BigONE Futures ETHUSDT -0.079 0.14 0.01000 59,742 121,711,803
DueDEX ETHUSDT -0.100 0.00 0.01000 57,167 824,837
BigONE Futures ETHUSD -0.073 0.13 0.01000 16,460 27,847,350
MyCoinStory ETHUSDT_QUANTO_PERP -0.067 0.00 0.01000 2,032 6,164,717
Biki (Futures) 4 -0.037 0.11 -0.02778 0 230,036,037
OKEx (Futures) ETH-USDT-SWAP -0.002 0.10 0.04782 0 222,300,908
Bitget Futures CMT_ETHUSDT 0.006 0.11 -0.01000 0 121,124,125
Bitget Futures CMT_ETHSUSDT 0.000 0.11 0.02000 0 42,357,041
Gate.io (Futures) ETH_USDT -0.137 0.00 0.05560 0 36,348,707
Bibox (Futures) 4ETH_USDT 0.000 0.10 0.00000 0 23,271,766
HBTC (Futures) ETH-SWAP -0.037 0.12 0.05482 0 21,003,253
HBTC (Futures) ETH-SWAP-USDT -0.045 0.16 0.05298 0 15,829,974
Bitget Futures ETHUSD 0.000 0.11 -0.01000 0 5,735,173
GMO Japan (Futures) ETH_JPY 0.000 0.73 0.00000 0 3,512,318
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
ZBG Futures ETH_USDT 0.000 0.00 0.00000 0 557,622
MCDEX RQBAP 0.112 0.18 0.03741 0 449,127
Delta Exchange ETHUSDT -0.126 0.11 0.09450 0 426,279
Delta Exchange ETHBTC -0.056 0.11 0.01000 0 272,673
MCDEX ETH-PERP -0.152 0.34 0.00000 0 51,670
CoinFLEX (Futures) ETH-USD-SWAP-LIN 0.000 0.00 0.00000 0 42,199
Binance JEX (Futures) ETHUSDT 1.003 0.50 0.01000 0 12,423
Biki (Futures) 5 -0.032 0.12 -0.03122 0 3,696

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-1225 0.223 0.17 2,475,996 141,308 25/12/2020
BTSE (Futures) BBCXZ20 0.541 1.04 272 25,040 25/12/2020
BTSE (Futures) BBAXV20 0.275 0.49 14,341 13,359 30/10/2020
BTSE (Futures) BBCXV20 0.877 0.33 195 11,997 30/10/2020
BTSE (Futures) BBAXZ20 -0.969 0.68 17,967 1,996 25/12/2020

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 0.098 0.15 -0.06480 6,644,822 2,772,175
Gate.io (Futures) ALT_USDT -2.239 0.00 0.01000 1,162 986

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) TBTCDOMF0:USTF0 -0.006 0.12 0.00000 22,452 238,101
BTSE (Futures) BDIPFC 0.178 0.17 0.00000 6,268 4,870

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.