Lưu trữ cho từ khóa: options

Altcoin

Singapore’s DBS to launch OTC crypto options for institutional investors

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Banking giant DBS is set to launch crypto options and structured notes for institutional and accredited clients, becoming the first Asian bank to offer such products.

Singapore-based DBS Bank announced plans to introduce over-the-counter cryptocurrency options trading and structured notes for eligible institutional investors and accredited wealth clients starting in Q4 2024.

In a Sept. 17 press release, the bank said the move positions it as the first financial lender in Asia to offer financial products linked to the value of Bitcoin (BTC) and Ethereum (ETH). DBS group head of trading and structuring Jacky Tai says the move comes as professional investors are “increasingly allocating to digital assets in their portfolios.”

“Now, our clients have an alternative channel to build exposure to the asset class and incorporate advanced investment strategies to better manage their digital asset portfolios.”

Jacky Tai

So far, the bank allows clients to trade crypto and security tokens via its own crypto arm DBS Digital Exchange. With the new venture, clients could gain exposure to crypto through options trading and structured notes, potentially allowing for yield on “fiat or take delivery of the underlying cryptocurrency,” the press release reads.

“For instance, a client seeking to manage the inherent volatility of Bitcoin may buy a put option, which gives the client the right to sell Bitcoin at a fixed price at a future date, even if Bitcoin prices fall below the fixed price by that future date.”

DBS

Although the bank deepens its web3 roots, crypto options and structured notes will still be available only to eligible institutional investors and accredited clients of DBS Private Bank and DBS Treasures Private Client, per the press release.

In late August, DBS launched a blockchain-based solution utilizing smart contracts to streamline government grant disbursements. The bank indicated that the pilot aimed to demonstrate how these programmable grants could enhance transparency and efficiency in the grant distribution process.

Tổng hợp và chỉnh sửa: ThS Phạm Mạnh Cường
Theo Crypto News

Bitcoin

CME launches small Bitcoin ‘Friday Futures’ to attract retail investors

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CME Group is set to introduce a new Bitcoin futures contract, dubbed Bitcoin Friday futures, on September 30, pending regulatory approval.

These smaller-sized contracts are designed to attract retail investors who may find existing offerings or the price of Bitcoin (BTC) too large and expensive. 

Priced at one-fiftieth of a Bitcoin, Bitcoin Friday Futures — or BFF contracts — will be cash-settled, meaning they won’t settle in crypto. They will expire every Friday, providing traders with a more accessible and flexible option for managing their Bitcoin exposure, according to a press release. 

The BFF contracts will be listed every Thursday for trading the following Friday, allowing participants to trade the nearest two Fridays at any given time. This new product aims to help investors mitigate weekend price volatility by closely tracking the spot price of Bitcoin.

Earlier on August 27, Nasdaq announced plans to list Bitcoin index options trading that will track the price of Bitcoin represented by the CME CF Bitcoin Real-Time index. 

Bitcoin contracts

Giovanni Vicioso, CME Group’s Global Head of Cryptocurrency Products, emphasized that these contracts allow institutional and retail traders to fine-tune their Bitcoin exposure on a regulated exchange. 

The contracts will settle to the CME CF Bitcoin Reference Rate New York Variant, ticker symbol ‘BRRNY,’ a benchmark also used by spot Bitcoin ETFs, enhancing liquidity and market efficiency during U.S. trading hours.

“By settling to the BRRNY, the benchmark used by leading spot bitcoin ETFs, traders will also benefit from growing liquidity and the ability to more efficiently capture market moves during U.S. hours,”

Giovanni Vicioso. 

Interactive Brokers, Plus500, and Webull have expressed support for the launch, highlighting the product’s flexibility, cost-effectiveness, and appeal to a broad range of investors—mainly retail investors.

This launch is part of CME Group’s ongoing efforts to expand its cryptocurrency derivatives offerings following the success of its existing Bitcoin futures and Micro Bitcoin futures products.

Earlier this year, the SEC approved spot Bitcoin ETF trading, which led many large financial institutions to file for their own spot Bitcoin ETFs.

Tổng hợp và chỉnh sửa: ThS Phạm Mạnh Cường
Theo Crypto News

Bitcoin

Nasdaq files for SEC approval to launch Bitcoin index options

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Nasdaq just filed with the U.S. Securities and Exchange Commission to list and trade Bitcoin Index Options.

These options will track the price of Bitcoin (BTC) represented by the CME CF Bitcoin Real-Time Index, according to a press release. These options aim to provide increased transparency and reliability to the crypto market.

Pending regulatory approval, this initiative would allow investors to better manage and hedge their crypto positions, thereby enhancing liquidity and maturity within this digital asset class.

Bitcoin index options

The options will feature European-style exercise and cash settlement, with final settlement values determined by the CME CF Bitcoin Reference Rate — New York Variant. This means the options are settled in cash, not Bitcoin.  

This benchmark provides a clear reference rate that will be pegged to a specific time, crucial in a market like crypto, characterized by continuous global trading.

If approved, the Nasdaq Bitcoin Index Options will offer institutional and retail investors an alternative risk management tool, complementing existing futures and options contracts tied to Bitcoin.

The proposed index options are listed as a cost-effective way to magnify exposure to Bitcoin, giving institutional investors and traders an alternative method to hedge their exposure to the world’s largest cryptocurrency.

Similarly, earlier this year, the SEC approved spot Bitcoin ETF trading, which led many large financial institutions to file for their own spot Bitcoin ETFs.

Nasdaq is partnering with CF Benchmarks to make this possible.

Tổng hợp và chỉnh sửa: ThS Phạm Mạnh Cường
Theo Crypto News