Institutional Investors Hedge Bitcoin More Aggressively Than Ether in Options Market
Options are a primary tool for institutional investors seeking to manage downside risk in crypto assets. A negative risk reversal means protective puts are more expensive than bullish calls. Since Bitcoin and Ether began weakening in October 2025, the gap in hedging costs has become an important indicator of large investors' relative confidence in the two assets.
CoinDesk reported on April 1, 2026, that Bitcoin puts were more expensive than Ether puts across all maturities, with even contracts expiring in March 2027 showing a more bearish tilt. Bitcoin traded at $68,622.64 that day, while Ether was at $2,136.90. Farside Investors data showed that spot BTC and ETH ETFs recorded one-day net inflows of $117.5 million and $31.2 million, respectively.
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The history behind this eventBitcoin Holds Near $64,700 as Options Traders Add Downside Hedges
U.S.-listed spot Bitcoin exchange-traded funds have become a key conduit for institutional money entering the cryptocurrency market, making their subscription flows an important influence on near-term prices. Bitcoin’s volatility has recently compressed as the token trades in a narrow range at elevated levels, but derivatives positioning suggests investors have not dismissed the risk of a sharp move triggered by macroeconomic data.
Spot Bitcoin ETFs drew a combined $754 million of net inflows during the first week of August, helping keep the cryptocurrency near $64,700. Options traders nevertheless increased their use of downside protection, with put volume accounting for a larger share of recent activity. The shift points to continued caution before the release of U.S. employment data, even as steady ETF demand supports Bitcoin’s price.
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