Institutional Investors Shift From Bitcoin to Altcoin Options Strategies

MEVictim · 2025-12-30T16:30:02+00:00

Institutional investors, after driving the 2025 rally, are shifting their focus from Bitcoin to altcoins and diversifying their options strategies to manage volatility and enhance returns, according to STS Digital.

MEVictim

2025-12-30 16:30:02

Abstract generation in progress

Source: CryptoNewsNet Original Title: Institutional Investors Who Started the 2025 Rally Are Moving Away From Bitcoin! They’re Turning to Altcoins! Original Link: While institutional investors drove the rally in 2025, they shifted to different strategies as we entered 2026. Institutional investors are increasingly turning to altcoin options.

Crypto derivatives trading firm STS Digital reported that institutional investors’ options strategies are changing. Institutions are increasingly expanding options strategies, previously used primarily for Bitcoin, to the altcoin market in order to manage price volatility and generate additional returns.

The firm noted that there has been an increase in altcoin options trading, triggered by demand from venture capitalists, foundations, and large investors.

Maxime Seiler, co-founder and CEO of STS Digital, stated: “Our client base includes token projects and foundations, investors with large amounts of assets, and asset management firms that manage risk prior to liquidity events. Increasingly, we are seeing these participants applying option strategies historically used in Bitcoin to the altcoin space.”

Among the strategies chosen by institutions are covered call options, which involve selling a corresponding call option while buying an asset. Other strategies include selling put options to bet against sharp declines, hedging downside risk, and buying call options to prepare for a potential upside.

Investors are adopting these strategies to keep their risks under control while minimizing the risk of forced liquidation.

*This is not investment advice.

BTC0,27%

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

22 Likes

Reward
22
10
Repost
Share

Comment

0/400

hodl_therapist

· 01-02 14:58

Institutional bottom-fishing for altcoins? This is another trap, haha

View OriginalReply0

MidnightTrader

· 2025-12-31 12:30

Are institutional players really starting to ditch Bitcoin? Could this wave of altcoins turn out to be another big trap...

View OriginalReply0

AirdropATM

· 2025-12-31 04:30

Did the institutions leave so quickly? It feels like BTC hasn't stabilized yet.

View OriginalReply0

CryptoDouble-O-Seven

· 2025-12-30 16:57

Institutions are starting to dump again. Are they already tired of Bitcoin so quickly? Haha

View OriginalReply0

WalletDivorcer

· 2025-12-30 16:56

Big investors are really scared. When BTC can't go up, they go play with altcoins?

View OriginalReply0

AlwaysQuestioning

· 2025-12-30 16:56

Institutions dump Bitcoin and shift to altcoins. I've seen this trick before; I'm just worried that retail investors will be the ones to end up holding the bag in the end.

View OriginalReply0

HashBrownies

· 2025-12-30 16:51

Institutions bought the dip in Bitcoin and then ran away. Now they're playing with small coins. I've seen this trick back in 2017.

View OriginalReply0

just_another_wallet

· 2025-12-30 16:47

Are institutions really starting to ditch Bitcoin? Now it's time for altcoins to take off, but it feels like we're about to get cut again.

View OriginalReply0

MevSandwich

· 2025-12-30 16:44

Are institutions starting to buy the dip on altcoins? Is this move genuine or just another attempt to harvest retail investors?