During a conversation with TheStreet Roundtable Scott Melker, James Putra, SVP of Strategy at TradeStation, broke down how traditional hedging strategies are finally becoming viable in the crypto markets.
“In the past, you really couldn’t execute any traditional hedging strategies in crypto,” Melker noted, pointing to the historical lack of tools like options.
Putra didn’t hesitate.
“100%,” he replied. “We’re seeing a lot of interested people doing the basis trade… ETF products being used as margin to leverage up into other areas.”
Founded in 1982, TradeStation is a U.S.-based online brokerage platform that offers trading services for stocks, options, futures, and cryptocurrencies.
Originally known for its advanced tools tailored to professional traders and institutional clients, TradeStation has expanded its offerings over the years to cater to retail investors as well. Its crypto arm, TradeStation Crypto, provides users with access to a range of digital assets including Bitcoin, Ethereum, and others, integrating traditional market tools with digital asset trading.
Strategies like covered calls and cash-and-carry trades—once the domain of over-the-counter (OTC) desks—are now becoming mainstream.
“It used to be all OTC, kind of a scary market, but fun at the same time,” Putra recalled. “Now you can do it in a proper trading platform. Most major brokers have this.”
That evolution is drawing in more than just hedge funds. Family offices and retail investors are beginning to adopt both directional and non-directional strategies, previously out of reach in crypto.
“We’re seeing individuals, family offices really start mixing it up… across asset classes.”
Still, the shift is far from complete. Only a handful of digital assets have robust futures and options markets.
“You can only do it on a few assets,” Putra pointed out. “Even those complex futures and options aren’t available for most of the market.”
While products tied to Solana and XRP are emerging, most institutional players are still focused squarely on one thing.
“Pretty much all the volume and interest is still in Bitcoin.”
And while capital is clearly flowing into the ecosystem, Putra offered a final warning: it may not be showing up where it counts.
“We might get that $10 trillion market cap we want,” he said, “but it’s combined in derivatives… not necessarily going into spot (trading).
