Bitcoin ETF holders and corporate treasuries are actively buying downside protection as the cryptocurrency hovers near $65,000, signaling caution even among long-term investors, according to Deribit.
At the time of reporting, Bitcoin BTC was trading around $64,874, while investors with a long-term outlook have been stacking $60,000 put options — derivatives that allow holders to sell Bitcoin at that price even if the market declines further. “ETF holders and corporate treasuries are buying six-month and one-year $60,000 puts as portfolio insurance,” said Jean-David Péquignot, Chief Commercial Officer at Deribit.
These put contracts function like insurance, protecting large holders from steep losses while they maintain their Bitcoin positions. Interest in the $60,000 strike has surged, with open interest reaching $1.5 billion — the largest across all strikes and expiries on Deribit. One contract represents one BTC, and the exchange accounts for nearly 80% of global crypto options volume.
The spike in long-dated $60,000 puts indicates investors are concerned that any near-term rally could be short-lived, potentially paving the way for a sharper drop. This hedging activity is particularly notable because ETF holders and corporate treasuries control a substantial portion of circulating Bitcoin. U.S.-listed spot Bitcoin ETFs alone have accumulated roughly 1.26 million BTC, about 6% of supply, while publicly listed firms hold around 1.14 million BTC, or 5.7%.
Bitcoin has traded choppily below $70,000, touching lows near $60,000 earlier this month. While the cryptocurrency has gained nearly 5% since Wednesday, options markets remain cautious, with puts trading at a significant premium compared with calls. “Although the spot price climbed, the 25-delta risk reversal remains stubborn,” Péquignot said. “Thirty-day puts are still trading at about a 7% volatility premium over calls, indicating smart money is paying for downside protection rather than chasing upside.”
Péquignot added that volatility could intensify if Bitcoin falls below $63,000. Market makers and dealers providing liquidity are “short gamma” at $60,000 and lower, meaning they may sell more as prices approach that level to hedge, potentially amplifying downside moves.
Overall, the activity underscores a cautious stance by long-term holders, who are securing protection against potential losses while remaining committed to holding Bitcoin over the medium and long term.
