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 -4.548 0.01 246,758,610 1,193,315,351 25/6/2021
OKEx (Futures) ETH-USD-210625 -4.164 0.01 218,794,440 592,428,199 25/6/2021
Binance (Futures) ETHUSD_210625 -4.496 0.01 207,971,200 439,224,141 25/6/2021
OKEx (Futures) ETH-USDT-210625 -4.013 0.01 2,317,140 350,027,326 25/6/2021
OKEx (Futures) ETH-USD-210423 -0.418 0.05 46,885,220 249,580,260 23/4/2021
OKEx (Futures) ETH-USDT-210924 -8.615 0.02 1,213,790 221,618,856 24/9/2021
Huobi Futures ETH_NQ -6.580 0.01 157,793,340 215,200,086 25/6/2021
OKEx (Futures) ETH-USD-210924 -9.691 0.06 89,797,030 212,005,288 24/9/2021
OKEx (Futures) ETH-USD-210430 -0.862 0.09 30,019,890 204,048,117 30/4/2021
OKEx (Futures) ETH-USDT-210423 -0.471 0.02 498,660 153,930,613 23/4/2021
Huobi Futures ETH_CW -0.473 0.02 58,437,090 114,011,678 23/4/2021
FTX (Derivatives) ETH-0625 -4.488 0.06 141,570,499 106,301,921 25/6/2021
Binance (Futures) ETHUSD_210924 -10.177 0.07 62,730,180 104,808,202 24/9/2021
OKEx (Futures) ETH-USDT-210430 -1.051 0.15 375,200 102,682,967 30/4/2021
Huobi Futures ETH_NQ -9.593 0.04 98,833,030 94,160,954 24/9/2021
Huobi Futures ETH_NW -0.923 0.06 38,141,140 75,315,132 30/4/2021
Huobi Futures ETH_NW -1.099 0.01 46,435,490 49,636,711 23/4/2021
Deribit ETH-25JUN21 -4.577 0.05 108,601,916 37,150,442 25/6/2021
FTX (Derivatives) ETH-1231 -17.382 0.14 115,162,068 32,646,996 31/12/2021
FTX (Derivatives) ETH-0924 -10.968 0.13 74,476,607 24,929,914 24/9/2021
Deribit ETH-23APR21 -0.723 0.13 0 16,941,125 23/4/2021
Deribit ETH-30APR21 -1.387 0.15 46,695,815 12,129,201 30/4/2021
Deribit ETH-24SEP21 -9.920 0.08 51,326,371 8,164,965 24/9/2021
Deribit ETH-31DEC21 -13.554 0.18 34,528,145 3,819,132 31/12/2021
Deribit ETH-28MAY21 -3.234 0.16 2,527,040 2,234,899 28/5/2021
Deribit ETH-25MAR22 -17.015 0.58 138,019 359,342 25/3/2022

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
FTX (Derivatives) ETH-PERP 0.070 0.02 0.11760 754,118,998 2,691,742,587
Bybit ETHUSD 0.045 0.01 0.02760 664,508,004 3,431,292,998
MXC (Futures) ETH_USDT -0.013 0.05 0.00820 646,352,178 258,917,149
Bitfinex (Futures) ETHF0:USTF0 0.027 0.02 -0.07752 627,785,636 22,601,825
Binance (Futures) ETHUSDT -0.046 0.01 0.01000 593,117,558 6,543,409,802
Binance (Futures) ETHUSD_PERP 0.031 0.02 0.01000 427,577,450 2,939,612,339
Huobi Futures ETH-USD 0.087 0.01 0.01000 341,677,440 1,876,697,806
Hopex ETHUSDT 0.016 0.00 0.00000 275,695,077 1,178,782,091
MyCoinStory ETHUSDT_QUANTO_PERP -0.110 0.00 0.08857 259,705,512 857,797
Bitfinex (Futures) TETHF0:USTF0 0.808 0.21 -0.25000 217,744,062 18,656,998
BitMEX ETHUSD -0.099 0.01 0.13610 197,723,729 669,408,875
Deribit ETH-PERPETUAL -0.055 0.02 0.00180 188,770,701 347,574,671
Bitforex (Futures) SWAP-USD-ETH 0.082 0.01 -0.03700 145,658,559 3,249,922,272
OKEx (Futures) ETH-USD-SWAP 0.061 0.01 0.06214 140,334,040 668,561,791
BitZ (Futures) ETH_USDT -0.017 0.03 0.00000 135,766,717 454,610,777
BitZ (Futures) 102 0.039 0.12 0.00000 94,644,211 283,991,832
Bitget Futures CMT_ETHUSDT -0.003 0.02 0.03358 79,700,470 361,720,608
Bybit ETHUSDT -0.021 0.01 0.01700 71,602,349 213,615,199
Kraken (Futures) PI_ETHUSD -0.002 0.03 0.00963 70,162,722 167,611,213
ZBG Futures ETH_USDT -0.040 0.01 0.01000 61,041,194 1,319,430
Phemex (Futures) ETHUSD -0.047 0.01 0.02949 31,429,082 20,437,424
Prime XBT ETH/USD 0.000 0.05 0.00000 31,022,255 212,062,456
Perpetual protocol ETH_USDC 0.000 0.00 -0.02388 21,139,667 32,010,658
BTSE (Futures) ETHPFC 0.023 0.11 0.00000 19,206,912 43,775,643
BitZ (Futures) ETH_USDT_BZ 0.008 0.03 0.00000 10,405,714 1,074,445,676
Bitget Futures ETHUSD 0.023 0.01 0.01824 7,343,752 13,699,024
Prime XBT ETH/BTC 0.000 0.26 0.00000 7,050,411 3,122,954
Phemex ETHUSD -0.173 0.11 0.07048 6,296,398 27,182,027
dYdX Perpetual ETH-USD 0.231 0.14 0.00110 5,633,491 17,291,610
Futureswap ETH-USD -1.361 0.00 0.02818 4,932,457 29,617,252
AAX Futures ETHUSDTFP -0.121 0.04 0.03072 3,518,555 33,510,321
BitZ (Futures) 2 0.002 0.11 0.00000 2,457,740 37,688,760
CoinFLEX (Futures) ETH-USD-SWAP-LIN -0.794 5.77 0.00000 2,437,135 5,696,568
BitZ (Futures) ETH_USD 0.021 0.25 0.00000 2,320,695 23,944,646
Gate.io (Futures) ETH_USD 0.065 0.00 0.09910 1,892,638 3,192,801
Huobi Futures ETH-USDT 0.091 0.01 0.01000 1,580,996 3,418,550,878
Hopex ETHUSD 0.001 0.00 0.00000 1,184,750 22,352
BigONE Futures ETHUSDT 0.032 0.04 0.01431 1,040,852 642,614,857
BitZ (Futures) 202 0.056 0.14 0.00000 947,450 151,945,180
BigONE Futures ETHUSD 0.047 0.01 0.01000 829,852 32,725,604
ACDX Futures ETH-PERP -0.407 0.05 0.00000 588,689 24,533,278
C-Trade ETHUSD 0.084 0.01 0.18690 562,068 1,612,325
Poloniex Futures ETHUSDTPERP -0.140 0.10 0.01030 507,077 3,518,729
BaseFEX ETHUSDT 0.193 0.11 0.01000 293,344 2,867,590
Bit.com ETH-PERPETUAL -0.020 0.01 0.00000 153,407 5,261,378
BaseFEX ETHXBT -1.643 3.08 0.01000 80,183 789,729
DueDEX ETHUSDT -0.024 0.00 0.08390 37,629 2,641,617
AAX Futures ETHUSDFP -0.358 0.21 0.05419 15,598 1,635,521
Alpha5 ETHUSDT -0.315 0.11 0.00011 6,977 26,014
OKEx (Futures) ETH-USDT-SWAP 0.127 0.01 0.05071 0 1,118,768,765
CoinTiger (Futures) ETHUSDT -0.089 0.01 0.01000 0 653,052,886
Bitget Futures CMT_ETHSUSDT -0.010 0.01 0.01438 0 279,942,775
Biki (Futures) 4 -4.599 0.02 -0.03451 0 208,609,701
Gate.io (Futures) ETH_USDT -0.088 0.00 0.02580 0 169,075,921
Stormgain Futures ETH-PERPUSDT 0.000 0.11 0.00400 0 26,199,567
Binance (Futures) ETHUSDT_210326 -5.274 0.25 0.00000 0 17,670,699
ZBG Futures ETH_USD-R 0.010 0.02 0.09590 0 16,247,512
GMO Japan (Futures) ETH_JPY 0.000 0.39 0.00000 0 11,324,710
HBTC (Futures) ETH-SWAP-USDT 0.051 0.04 -0.00557 0 5,678,197
Delta Exchange ETHUSDT -0.228 0.01 0.08250 0 4,483,123
HBTC (Futures) ETH-SWAP 0.142 0.20 -0.00890 0 2,978,627
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
Bitfinex (Futures) ETHF0:BTCF0 -0.246 0.43 0.00000 0 1,299,690
Delta Exchange ETHBTC -0.223 0.02 0.01000 0 1,295,656
Bitfinex (Futures) TETHF0:BTCF0 0.559 0.11 -0.25000 0 779,083
MCDEX RQBAP 0.112 0.18 0.03741 0 449,127
Bibox (Futures) 4ETH_USDT 0.000 0.36 0.00000 0 415,258
Stormgain Futures ETH-PERPBTC 0.000 0.28 0.00400 0 182,609
MCDEX ETH-PERP -6.764 0.29 -0.03509 0 110,000
MXC (Futures) ETH_USD -0.042 0.02 0.00960 0 35,839
Binance JEX (Futures) ETHUSDT 2.603 0.32 0.01000 0 2,372
Biki (Futures) 5 -0.187 0.11 0.00526 0 2

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-0625 -3.599 0.28 2,871,445 1,680,108 25/6/2021
BTSE (Futures) BBAXJ21 -2.662 0.53 87,421 48,563 30/4/2021
BTSE (Futures) BBCXJ21 -1.081 0.28 191 35,723 30/4/2021
BTSE (Futures) BBCXM21 0.404 0.38 200 25,544 25/6/2021
BTSE (Futures) BBAXM21 -0.490 0.13 91,907 23,842 25/6/2021

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 -0.009 0.17 0.10560 21,074,014 28,108,369
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 0.283 3.34 0.00000 364,040 55,813
Bitfinex (Futures) TBTCDOMF0:USTF0 0.060 0.17 -0.11774 163,844 109,181
BTSE (Futures) BDIPFC 0.053 0.18 0.00000 5,698 63,007

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.