Rich by Coin

Large bitcoin ETF holders and corporate treasuries are buying six- and twelve-month put options at $60,000 or below as insurance against a potential price drop, according to Deribit. Open interest in the $60,000 bitcoin puts on Deribit has risen to about $1.5 billion, the highest across all strikes and expiries. ETF holders and corporate treasuries, the long-term players in the market, are stacking insurance against price crashes below $60,000, Deribit told CoinDesk.

These puts function like insurance: they give holders the right to sell bitcoin at $60,000 even if prices fall further, helping shield portfolios while they remain invested. Péquignot noted there has been surging interest in the $60,000 put. At the time of writing, those contracts had $1.50 billion in open interest, the highest across all strikes and expiries on Deribit.

The surge in interest in $60,000 puts expiring in six months or longer signals deep fears that any price rebound could fade and leave a sharper decline. What makes this hedging notable is that ETF holders and corporate treasuries own a sizable share of bitcoin. Investors have poured billions into U.S.-listed spot bitcoin ETFs and similar products worldwide in recent years.

The U.S. funds alone have seen inflows of 1.26 million BTC, roughly 6% of bitcoin’s total circulating supply. Meanwhile, publicly listed firms hold about 1.14 million BTC, or 5.7% of BTC’s supply.

While spot price climbed, the 25-delta risk reversal remained stubborn. 30-day puts are still trading at a ~7% volatility premium over calls, signaling that smart money is still paying up for downside protection rather than chasing the pump, Péquignot said. Volatility may pick up as prices approach $63,000, as dealers and market-makers who provide liquidity are often short gamma at that level. As prices near $60,000, these entities may sell more to rebalance their exposure, potentially adding to downside volatility.