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
BTCC Futures ETH-DAILY 0.004 0.03 0 1,284,295,502 28/5/2023
Huobi Futures ETH_CQ -0.197 0.06 3,680,300 12,735,916 30/6/2023
OKX (Futures) ETH-USD-230630 -0.223 0.02 90,713,550 11,414,807 30/6/2023
Binance (Futures) ETHUSD_230630 -0.280 0.01 63,749,140 10,832,111 30/6/2023
OKX (Futures) ETH-USDT-230630 -0.243 0.01 27,505,893 5,008,123 30/6/2023
Binance (Futures) ETHUSD_230929 -0.928 0.01 27,067,630 4,167,267 29/9/2023
OKX (Futures) ETH-USD-230929 -0.513 0.02 31,849,470 3,306,670 29/9/2023
Huobi Futures ETH_NW 0.090 0.17 156,510 3,265,451 2/6/2023
OKX (Futures) ETH-USDT-230602 -0.066 0.01 1,138,933 2,800,594 2/6/2023
OKX (Futures) ETH-USDT-230929 -0.504 0.01 9,880,152 2,642,083 29/9/2023
Deribit ETH-30JUN23 -0.098 0.03 78,490,979 1,960,331 30/6/2023
OKX (Futures) ETH-USD-230602 -0.033 0.03 3,460,500 1,883,797 2/6/2023
Huobi Futures ETH_NW -0.009 0.17 283,280 1,759,821 9/6/2023
Huobi Futures ETH_CW 0.071 0.10 179,890 1,404,621 2/6/2023
OKX (Futures) ETH-USD-230609 0.056 0.04 912,210 837,958 9/6/2023
Deribit ETH-9JUN23 -0.153 0.01 950,183 759,287 9/6/2023
Deribit ETH-2JUN23 -0.016 0.01 3,718,262 608,990 2/6/2023
OKX (Futures) ETH-USDT-230609 -0.015 0.03 735,740 427,460 9/6/2023
Bybit (Futures) ETHUSDM23 -0.019 0.04 0 290,092 30/6/2023
Deribit ETH-29SEP23 -0.302 0.01 34,887,075 237,961 29/9/2023
Bybit (Futures) ETH-16JUN23 -0.028 0.11 0 215,790 16/6/2023
Bybit (Futures) ETHUSDU23 -0.508 0.05 0 178,937 29/9/2023
Bybit (Futures) ETH-02JUN23 -0.058 0.13 0 112,922 2/6/2023
Bybit (Futures) ETH-09JUN23 0.078 0.11 0 107,552 9/6/2023
Deribit ETH-29DEC23 -0.654 0.05 15,439,116 86,473 29/12/2023
Bybit (Futures) ETH-30JUN23 0.032 0.10 0 76,034 30/6/2023
Bybit (Futures) ETH-29SEP23 -0.851 0.14 0 69,805 29/9/2023
Bybit (Futures) ETH-29DEC23 -1.756 0.11 0 60,191 29/12/2023
Bybit (Futures) ETH-28JUL23 -0.347 0.10 0 59,004 28/7/2023
Deribit ETH-29MAR24 -1.642 0.08 1,934,304 21,040 29/3/2024
Deribit ETH-28JUL23 -0.289 0.04 285,302 17,378 28/7/2023
OKX (Futures) ETH-USDC-230630 0.554 0.08 0 7,732 30/6/2023
OKX (Futures) ETH-USDC-230609 0.279 0.07 0 6,683 9/6/2023
OKX (Futures) ETH-USDC-230929 -0.550 0.06 0 2,976 29/9/2023
OKX (Futures) ETH-USDC-230602 -0.267 0.04 0 92 2/6/2023

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 0.060 0.01 -0.00360 7,584,598,542 1,779,252,805
Binance (Futures) ETHUSDT 0.047 0.01 -0.00012 1,512,769,959 2,186,627,461
MXC (Futures) ETH_USDT -0.003 0.02 0.00827 985,385,032 150,738,726
Bybit (Futures) ETHUSDT 0.036 0.01 -0.00360 867,009,903 351,460,305
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
AAX Futures ETHUSDTFP 0.371 0.09 0.24222 540,279,198 762,127,425
Deribit ETH-PERPETUAL -0.046 0.01 0.00070 491,270,142 47,506,774
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
Gate.io (Futures) ETH_USDT 0.046 0.02 -0.00320 393,374,251 173,553,425
BTCEX (Futures) ETH-30SEP22 0.088 0.04 -0.00540 312,936,114 53,456,052
Prime XBT ETH/USD 0.000 0.05 0.00000 266,307,600 11,433,102
Binance (Futures) ETHUSD_PERP 0.036 0.01 -0.00425 263,660,370 298,808,327
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
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 0.071 0.01 -0.00280 197,032,403 36,610,027
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
dYdX Perpetual ETH-USD 0.016 0.02 -0.00187 134,236,977 76,767,414
Prime XBT ETH/BTC 0.000 0.15 0.00000 121,678,900 527,964
MEXC Global (Futures) ETH_USDT 0.040 0.01 -0.00010 121,621,116 206,914,359
BTSE (Futures) ETHPFC 0.030 0.01 0.00000 120,710,875 604,361,594
GMX Derivatives (Arbitrum) ETH_USD 0.000 0.00 0.00000 116,420,260 17,089,694
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
BingX (Futures) ETH-USDT -0.008 0.01 -0.00790 107,520,327 161,175,739
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
MCS ETHUSDT_QUANTO_PERP -0.446 0.07 0.01000 65,367,972 604,755
Deepcoin (Derivatives) 4ETHUSDT 0.054 0.01 0.00086 61,609,333 1,462,237,031
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
WhiteBIT Futures ETH_PERP 0.073 0.03 0.01000 35,134,407 15,427,461
Bitmart Futures ETHUSDT 0.046 0.01 -0.00329 31,515,748 1,553,483,950
Huobi Futures ETH-USDT 0.065 0.01 0.01000 30,166,471 149,204,256
Bitfinex (Futures) ETHF0:USTF0 0.005 0.01 0.00000 27,120,640 2,149,054
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
Perpetual protocol ETH_USDC 0.000 0.00 -0.02000 17,280,873 0
Bitforex (Futures) SWAP-USD-ETH 0.040 0.01 -0.01271 16,465,361 1,425,995,227
Bitrue (Futures) ETH-USDT 0.055 0.01 -0.00012 8,077,580 881,591,768
Huobi Futures ETH-USD 0.077 0.02 0.01000 8,056,160 18,136,953
Kraken (Futures) PI_ETHUSD -0.076 0.05 -0.00141 8,022,844 1,492,735
Phemex (Futures) ETHUSD 0.036 0.01 -0.00566 7,932,717 378,416,830
CoinTR Pro (Derivatives) ETHUSDT 0.057 0.00 0.00170 7,620,562 33,322,508
Phemex ETHUSD -0.173 0.11 0.07048 6,296,398 27,182,027
BTCEX (Futures) ETH-USDT-PERPETUAL 0.033 0.01 -0.00990 6,065,471 610,357,784
Perpetual Protocol ETH_USD 0.000 0.00 -0.00002 3,841,784 5,219,665
Crypto.com Exchange (Futures) ETHUSD-PERP 0.044 0.03 -0.00109 3,375,510 10,441,607
CoinEx (Futures) ETH-USDT 0.032 0.01 -0.02517 3,365,624 7,497,007
GMX Derivatives (Avalanche) ETH_USD 0.000 0.00 0.00000 3,137,090 1,372,036
WOO Network (Futures) PERP_ETH_USDT -0.020 0.02 0.00228 3,132,868 130,835,517
Deribit ETH_USDC-PERPETUAL -0.026 0.02 0.00020 2,907,700 2,778,836
WOO X (Futures) PERP_ETH_USDT 0.012 0.02 -0.00072 2,904,689 17,972,447
MEXC Global (Futures) ETH_USD 0.045 0.01 -0.00430 2,627,780 1,176
BitZ (Futures) 2 0.002 0.11 0.00000 2,457,740 37,688,760
Bitget Futures ETHUSD 0.012 0.01 0.00828 1,739,689 3,036,942
Poloniex Futures ETHUSDTPERP 0.043 0.01 0.00020 1,712,197 849,075
HitBTC (Derivatives) ETHUSDT_PERP 0.096 0.05 -0.00695 1,001,072 3,020,432
AscendEX (BitMax) (Futures) ETH-PERP 0.027 0.00 -0.01149 983,296 10,654,358
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
Bitget Futures ETHUSD_DMCBL_221230 -0.379 0.03 0.00000 652,261 555,795
Bitget Futures ETHUSD_DMCBL_230630 -0.213 0.02 0.00000 572,068 606,838
BigONE Futures ETHUSD -0.060 0.10 0.01000 538,264 5,035,611
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_230929 -0.559 0.08 0.00000 483,896 466,794
BigONE Futures ETHUSDT -0.071 0.11 0.01000 336,361 75,903,712
Gate.io (Futures) ETH_USD -0.465 0.20 0.01000 309,682 14,708
BaseFEX ETHUSDT 0.193 0.11 0.01000 293,344 2,867,590
CoinEx (Futures) ETH-USD 0.043 0.04 -0.02677 276,515 52,436
Crypto.com Exchange (Futures) ETHUSD-220325 0.085 0.09 0.00000 200,695 187,350
Drift Protocol ETH-PERP 0.000 0.00 0.00038 192,969 167,742
Opnx Derivatives ETH-USDT-SWAP-LIN -0.060 0.00 0.00002 173,136 1,287,005
Binance (Futures) ETHBUSD 0.050 0.01 -0.00450 171,021 206,658,841
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
Powertrade (Derivatives) ETH-USD-PERPETUAL 0.180 0.10 -2.94000 140,896 16,772
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
Bitmart Futures ETHUSD 0.059 0.02 -0.01161 54,802 507,373
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
Bybit (Futures) ETHPERP 0.156 0.01 0.00030 10,491 1,376,009
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 (Futures) USD-M:ETH-USD-PERPETUAL 0.085 0.04 -0.03558 377 26,954,599
Bit.com (Futures) USD-M:ETH-USD-PERPETUAL -0.006 0.06 0.00000 373 200,428,368
AAX Futures ETHUSDFP -0.423 0.03 0.01051 212 203
MCDEX (BSC) USD-ETH 0.594 0.02 0.00039 89 1
BTCC Futures ETHUSDT 0.006 0.03 0.00000 0 980,372,889
CoinTiger (Futures) ETHUSDT 0.063 0.01 0.00353 0 802,107,004
XT.COM (Derivatives) ETH_USDT 0.054 0.00 -0.00300 0 690,029,277
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
BTCMEX ETHUSDT 0.055 0.00 0.01000 0 43,663,073
Deepcoin (Derivatives) ETHUSD 0.077 0.03 0.01912 0 38,572,158
Injective Exchange (Futures) ETH/USDT PERP -3.321 0.09 0.00000 0 31,952,646
Fairdesk Derivatives ETH-USDT-PERP 0.047 -0.38 0.01000 0 19,097,629
Binance (Futures) ETHUSDT_210326 -5.274 0.25 0.00000 0 17,670,699
AQX (Derivatives) ETH-USDT.PERP 0.032 0.01 0.00833 0 12,852,569
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
Stormgain Futures ETH-PERPUSDT 0.000 0.11 0.00400 0 5,316,648
Delta Exchange ETHUSDT -0.228 0.01 0.08250 0 4,483,123
Crypto.com (Futures) ETHUSD-PERP 0.000 0.05 0.00000 0 3,644,318
Bitget Futures ETHPERP_CMCBL 0.056 0.01 -0.01000 0 3,558,831
ZBG Futures ETH_USD-R20190927 0.000 0.19 0.00000 0 2,922,578
GMO Japan (Futures) ETH_JPY 0.000 0.06 0.00000 0 2,610,152
Globe (Derivatives) ETH-PERP 0.058 0.09 -0.66667 0 2,554,290
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
Bibox (Futures) 4ETH_USDT 0.000 0.01 0.00000 0 1,400,522
OKX (Futures) ETH-USDC-SWAP 0.061 0.01 -0.01564 0 1,318,731
Delta Exchange ETHBTC -0.223 0.02 0.01000 0 1,295,656
XT.COM (Derivatives) ETH_USD 0.048 0.00 0.00080 0 894,320
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
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
Bitfinex (Futures) ETHF0:BTCF0 0.008 0.01 0.00000 0 284,147
Bitmart Futures 32896 0.056 0.01 0.03000 0 210,332
MCDEX ETH-PERP -6.764 0.29 -0.03509 0 110,000
Helix (Futures) ETH/USDT PERP -0.128 0.04 -0.00100 0 100,554
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
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 -0.041 0.04 0.00000 0 1,455
Stormgain Futures ETH-PERPBTC 0.000 0.31 0.00400 0 1,342
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 0.613 1.62 0.10000 54,341 493,643
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 0.040 0.03 0.00000 300,974 1,663
Bitfinex (Futures) TBTCDOMF0:USTF0 0.060 0.17 -0.11774 163,844 109,181
Binance (Futures) BTCDOMUSDT 0.048 0.01 0.01000 6,674 1,360,931
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.