Following recent market shocks, we’re examining hedging practices in crypto markets. Perps dominate trading volume, dwarfing options, but is it time for regime change and could options be the answer? The October 10 crash reminded us how extreme crypto’s volatility can be, and how current hedging tools are limited due to the relatively small size of the market.
Time to Rethink Crypto Hedging
This week’s report examines current hedging strategies, how perps are used and why options could see more uptake in the aftermath of the worst liquidation event on record.
Unsurprisingly, funding rates dropped below zero during the October 10 crash, indicating strong demand for short positions. We can…
Oct 28 2025
