Bitcoin ETF holders and corporate treasuries are increasingly buying protection against a potential drop below $60,000, reflecting a cautious stance even among long-term investors, according to Deribit.
At the time of writing, Bitcoin BTC was trading around $64,874, while investors with extended time horizons have been accumulating $60,000 put options — contracts that allow them to sell Bitcoin at that level even if prices fall 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.
Put options act as a hedge, protecting large holders from steep losses while they maintain long-term positions. Open interest for the $60,000 strike has climbed to $1.5 billion, the largest across all strikes and expiries on Deribit. One contract represents one Bitcoin, and the exchange accounts for nearly 80% of global crypto options activity.
The surge in longer-dated $60,000 puts suggests that investors are wary of short-term rallies fading, which could trigger sharper declines. This hedging is especially notable given the substantial Bitcoin holdings of ETF investors and corporate treasuries. U.S.-listed spot Bitcoin ETFs alone hold roughly 1.26 million BTC, or about 6% of circulating supply, while publicly listed firms control roughly 1.14 million BTC, or 5.7%.
Bitcoin has traded unevenly below $70,000, touching lows near $60,000 earlier this month. Despite a roughly 5% gain since Wednesday, the options market continues to favor downside protection, with puts trading at a meaningful premium to calls. “Even as the spot price rose, the 25-delta risk reversal remains elevated,” Péquignot said. “Thirty-day puts are trading at about a 7% volatility premium over calls, showing that smart money is paying for protection rather than chasing gains.”
He added that volatility could increase if Bitcoin drops below $63,000. Dealers and market makers providing liquidity are “short gamma” at $60,000 and lower, meaning they may sell more as prices approach that level to hedge exposure, which could amplify downward moves.
Overall, the activity highlights the cautious approach of long-term holders, who are securing protection while continuing to maintain significant Bitcoin positions.
