Bitcoin BTC$67,779.50 ETF holders and corporate treasuries – the players everyone praises for their long-term vision – are stacking insurance against price crash below $60,000, cryptocurrency exchange Deribit told CoinDesk.

"ETF holders and corporate treasuries are buying 6-month and 1-year puts at $60k or below ($60,000 put, a derivative contract offering protection against potential price slide below that level) as portfolio insurance," Jean-David Péquignot, chief commercial officer of derivatives exchange Deribit.

This put option works like insurance: It lets buyers sell bitcoin at $60,000 even if the price crashes lower, shielding ETF investors and corporate treasuries with BTC from steeper losses while they hold for the long haul.

Péquignot was responding to questions about 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. On the exchange, one contract represents one BTC. The platform accounts for nearly 80% of the global crypto options activity.

The surge in interest in $60,000 puts expiring in six months or longer signals deep fears that any price bounce could fizzle fast, paving the way for a sharper drop.

What makes this hedging even more noteworthy is that ETF holders and corporate treasuries own a significant supply 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.

Bitcoin has been trading choppy below $70,000, having hit lows near $60,000 early this month, CoinDesk data show. The cryptocurrency has gained nearly 5% since Wednesday to trade near $67,500, but the options market remains unimpressed, with puts continuing to trade at a significant premium to calls or bullish bets.

"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.

He added that volatility may pick up as prices drop below $63,000. That's because dealers and market makers who create order-book liquidity are "short gamma" at $60,000 or lower.

This means that as prices approach $60,000, these entities may sell more to rebalance their overall exposure to neutral, inadvertently adding to downside volatility.