Swiss bank to allow betting against cryptocurrency

Asset management firm Vontobel from Switzerland will start a new futures product aimed to let customers bet against the price of bitcoin
17 November 2017   1332

The company will launch two mini futures which will let investors to make a profit if the bitcoin price drops.The futures will be listed on SIX Exchange this Friday.

The advantage of a mini-future certificate in comparison with a futures contract is a limited loss potential.

According to Eric Blattmann, head of public distribution of financial products at Vontobel, the launch of futures coincides with the desire of traders to expand the ways of trading cryptocurrencies.

We have seen big demand for our long tracker certificate from investors interested in playing the upside potential of bitcoin and now they have also the possibility to hedge their position or go short.
 

Eric Blattmann
Head of public distribution of financial product, Vontobel

After CME Group Inc., the world’s biggest exchange, claimed it would start bitcoin futures next month it can contribute to appearance of two-way price movement which shows the cryptocurrency starts to gain mainstream acceptance as a financial instrument.

Bakkt to Unveil Bitcoin Futures Test Date

Along with date announcement, COO Bakkt believes the platform will attract institutional investors and set new standards for the cryptocurrency market
14 June 2019   237

The Bakkt cryptocurrency platform has named the exact start date for testing Bitcoin futures. The first users will be allowed to test the tool on July 22.

According to Bakkt's Operations Director, Adam White, the platform will attract institutional investors and set new standards for the cryptocurrency market.

White pointed out that the wider distribution of cryptocurrencies, in particular, is hampered by unreliable pricing mechanisms and the likelihood of instantly falling rates.

Along with these problem-solving solutions that are new to digital asset markets, Bakkt also brings all the other features that institutions would expect in a versatile and broadly accessible market, including: block trades; a fee holiday through the end of the year to encourage trading; market maker incentive programs to encourage liquid markets; and integrations with ISVs and regulated brokerage platforms.
 

Adam White

COO, Bakkt

At Bakkt, two futures contracts will be presented - with daily and monthly settlements. Risk management and the securing mechanism for these contracts will meet the standards of the traditional derivatives market.