SpiderRock Advisors, a Chicago-based firm specialising in option overlay strategies, is seizing the opportunity presented by the influx of funds into spot Bitcoin ETFs to assist financial advisors in managing their clients' cryptocurrency assets more effectively. By utilising put and call options on these ETFs, SpiderRock aims to create collars on crypto investments, aiming to mitigate volatility and optimise tax outcomes. Dave Donnelly, SpiderRock's managing director, views this development as a significant breakthrough for wealth managers, allowing them to hedge a wide range of crypto assets held directly by clients, which were previously challenging to advise on due to regulatory constraints and lack of visibility. The firm, with over $4.5 billion under management, primarily in option overlay strategies, has plans to leverage the liquidity and size of leading spot Bitcoin ETFs like IBIT and FBTC to offer these hedging solutions to advisors with clients holding direct crypto positions. This strategy, which limits upside potential while protecting against downside risk, may not be suitable for all crypto investors, especially those who actively trade on volatility. However, for investors seeking to safeguard gains or manage risk exposure, this approach could provide valuable portfolio diversification and fee-based advisory services.