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Cryptocurrency Derivatives Exchange LedgerX launched the first bitcoin savings account regulated by the Commodity Futures Trading Commission (SEC). ]
The new product, unveiled Tuesday by the New York firm, allows institutional investors to earn interest in USD on their Bitcoin positions over periods of maturity of three, six and twelve months, with target yields of up to 39 to 16% per year.
As Forbes explains, the product essentially imitates a call overwrite, a trading strategy whereby an investor deposits bitcoin on the platform and then sells a longer-term purchase option with a call from higher strike.
Juthica Chou, co-founder of LedgerX who also serves as chief of operations and risks, told the publication that the company had decided to manufacture the product after noticing that a large number of his clients were already using the platform to run the call. crushes – albeit through a much more complicated process.
For this reason, the company expects this product to immediately see high volumes, even though it is unlikely that this will attract much interest in bitcoin bears.
"This interface will definitely be oriented towards long bitcoin holders," said Chou, a former derivatives trader in the Goldman Sachs securities division, "who will probably only deposit bitcoin who will want to earn interest on this bitcoin. . "
LedgerX was the first regulated US exchange to offer bitcoin derivatives and currently holds two different CFTC licenses. The trading volume is much lower than on the bitcoin futures markets of other US stock exchanges CME and CBOE – which have so far attracted more bitcoins than bulls – but the firm reports that the volume has risen to 30 million dollars per month during the last quarter. transactions with an average notional value of $ 60,000.
The bitcoin savings product is one of the many institution-based services that have been scheduled to coincide with New York's "Blockchain Week."
As CCN reported, Coinbase cryptocurrency brokerage unveiled a series of products aimed at institutional traders, while the Japanese financial holding company Nomura has partnered with the portfolio maker LedgerX cryptocurrency to provide institutional traders with access to cryptoassurance.
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