Best Crypto ETFs for Options Trading

ByTarik Pierce

Crypto ETFs provide plenty of volatility for options traders so I decided to share my personal favorite Bitcoin ETFs and Ethereum ETFs for options trading.

This article includes a mix of spot crypto ETFs and leveraged crypto etfs for options traders to target.

Spot crypto ETFs will closely match the underlying crypto while leveraged ETFs usually add 2x exposure.

If played correctly, you can generate huge options gains whenever Bitcoin or Ethereum move up aggressively in price.

IBIT

IBIT is probably the easiest contract for beginners who want to trade on BTC price movements without the extra volatility of a 2x leveraged ETF product.

IBIT Entry and Exit Points

I'll normally use Coinglass BTC Monthly Returns and Tradingview BTC Chart to determine my enter and exit points on IBIT options based on Bitcoin price movements and historical trends (though not guaranteed to occur in the future).

Buying IBIT calls when bullish and buying IBIT puts when the market becomes bearish on Bitcoin

IBIT Trading Strategies

If you purchase IBIT calls for enough into the future then you can sell near date calls to lower your cost basis.

IBIT Risk Factors

Trading IBIT options is risky when Bitcoin and the overall crypto market moves sharply against you.

Risks include Bitcoin selloffs during the weekend when the ETF markets are closed.

Ethereum ETHA

Tarik is an online digital nomad who has earned a living online since 2006. He studied Economics at Dartmouth College and Psychology at Northwestern University.