Bitcoin ETF, Treasury Firms Stack $60K Crash Puts: Deribit

Bitcoin ETF holders and corporate treasury firms are loading up on downside protection through six-month and one-year put options struck at $60,000, according to derivatives exchange Deribit. Open interest on those contracts has climbed to $1.50 billion, the largest concentration across all strikes and expiry dates on the platform, signaling that institutions celebrated for their long-term conviction are quietly bracing for a crash.

Why Are Bitcoin ETF Holders Buying Put Options?

Institutional investors are treating the $60,000 puts as portfolio insurance against steep drawdowns. Jean-David Pequignot, chief commercial officer at Deribit, said ETF holders and corporate treasuries are targeting contracts expiring in six months to one year. The put grants buyers the right to sell Bitcoin at $60,000 no matter how far spot falls, capping losses while preserving upside.

Deribit commands roughly 80% of global crypto options activity, and the $1.50 billion in notional open interest at the $60,000 strike was the highest of any level at the time of reporting. Each contract on the exchange represents one BTC, underscoring the volume of institutional hedging concentrated at a single price.

ETF holders and corporate treasuries are buying 6-month and 1-year puts at $60k or below as portfolio insurance.

— Jean-David Pequignot, Chief Commercial Officer, Deribit

ETF and Corporate Treasury Exposure

The hedging carries extra weight because these buyers control a significant share of circulating Bitcoin. Investors have poured billions into U.S.-listed spot Bitcoin ETFs and comparable products worldwide. The American funds alone have drawn inflows of 1.26 million BTC, roughly 6% of total circulating supply, according to market data. Publicly listed firms hold an additional 1.14 million BTC, about 5.7% of supply.

Combined, ETF investors and public-company treasuries account for nearly 12% of all Bitcoin in circulation. The scramble for $60,000 floor protection among holders of that magnitude underscores anxiety that any near-term bounce could stall, leaving large portfolios exposed to a sharper leg down.

Options Skew Stays Bearish Despite Rally

Bitcoin has gained approximately 5% since Wednesday to trade near $67,500, yet the options market remains unimpressed. The 25-delta risk reversal over a 30-day window shows puts priced at a roughly 7% volatility premium over calls, Pequignot noted, meaning smart money keeps paying up for downside hedges rather than chasing the rally.

The cryptocurrency has traded in a choppy range below $70,000 and dipped near $60,000 earlier this month, according to market data. The persistent put premium suggests traders view the recent rebound as fragile and expect further tests of the downside.

What Does Short Gamma at $60K Mean for Volatility?

A slide below $63,000 could spark accelerated selling driven by dealer hedging mechanics, according to Pequignot. Market makers and dealers providing order-book liquidity on Deribit are short gamma at the $60,000 level and below. As Bitcoin's price approaches $60,000, these participants must sell additional contracts to rebalance their exposure to neutral.

That forced rebalancing creates a feedback loop: each drop triggers more dealer selling, pushing the price lower still and amplifying volatility. The $60,000 strike therefore functions not merely as a psychological level but as a structural inflection point where market microstructure could magnify losses beyond what spot fundamentals alone would dictate.