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   1608

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.

PBoC to Continue Anti-Crypto Propaganda

The regulator published a warning in its WeChat account called “Protection of the rights and interests of consumers of financial services”
23 March 2020   319

The People's Bank of China has returned to criticism of cryptocurrencies amid a worsening economic situation in the world.

On March 22, the regulator published a large-scale warning in its WeChat account under the heading “Protection of the rights and interests of consumers of financial services”. It describes three ways in which cryptocurrency service providers can mislead consumers.

First of all, the amount of fraud transactions with bots is serious. The average turnover rate of the top three overseas crypto currency exchanges is much higher than that of foreign licensed exchanges. Second, market manipulation exists in these exchanges where forced leveraged trading eventually causes the exchanges to explode. Third, money laundering is a big issue.

 

People's Bank of China

In addition, the Chinese Central Bank calls the opinion that Bitcoin may serve as a protective asset, erroneous. The regulator indicates its high volatility and recommends that citizens not follow the example of other investors and refuse to participate in cryptocurrency trading.