Bitcoin ETF holders and corporate treasuries are increasingly hedging against a potential drop below $60,000, signaling caution even among long-term investors, according to Deribit.

At the time of writing, Bitcoin BTC was trading near $64,874, while investors with a long-term horizon have been accumulating $60,000 put options — contracts that allow them to sell Bitcoin at that strike price even if the market falls 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 options act like insurance, providing protection against steep losses while holders maintain their positions. Open interest for the $60,000 strike has reached $1.5 billion, the largest across all strikes and expiries on Deribit. Each contract represents one Bitcoin, and the platform accounts for roughly 80% of global crypto options trading.

The rise in interest for longer-dated $60,000 puts suggests investors are wary that short-term rallies could quickly reverse, potentially triggering sharper declines. This hedging is especially significant because ETF holders and corporate treasuries control large portions of circulating Bitcoin: U.S.-listed spot Bitcoin ETFs hold about 1.26 million BTC, or roughly 6% of supply, while publicly listed firms own approximately 1.14 million BTC, or 5.7%.

Bitcoin has traded unevenly below $70,000, reaching lows near $60,000 earlier this month. Despite a roughly 5% gain since Wednesday, the options market reflects continued caution, with puts trading at a notable premium over calls. “Even as spot prices climbed, the 25-delta risk reversal remains elevated,” Péquignot said. “Thirty-day puts are trading at around a 7% volatility premium over calls, indicating that smart money is prioritizing downside protection rather than chasing short-term gains.”

Péquignot added that volatility could rise if Bitcoin falls below $63,000. Market makers providing liquidity are “short gamma” at $60,000 and lower, meaning they may sell more to hedge as prices approach that level, potentially amplifying downward moves.

The activity highlights how long-term holders are managing risk: securing protection against potential losses while maintaining significant Bitcoin positions over the medium and long term.