The former hedge fund manager Mike Novogratz’s who ventured Galaxy Digital investment bank in Jan 2018, now introduced cryptocurrency options contracts trading segment which is rising as one of the most important tools for hedging in the crypto trading space. The news broke out on June 20, via corroborated cryptocurrency media outlets.
As per the information, the new initiative by the merchant bank is due to the growing demand for options trading by the institutional investors. Michael Novogratz through Galaxy Digital while sticking to its aim of creating an institutional grade cryptocurrency moving towards the progress after racking up various gains and losses. In the first nine months of 2018, the company lost $136 million in cryptocurrency trading.
The on-and-off-again billionaire through his investment bank is already entered into various business partners with several organizations in order to construct blockchain products and services.
Galaxy Digital and Cryptocurrency Hedging
According to Yoshi Nakamura, global business development head of Galaxy Digital mentioned to the media outlet the block about the interest of cryptocurrencies firms in options contracts trading tool and their desire to protect themselves from the “inherent volatility risk” that cryptocurrencies are holding. These firms are mining companies, some treasury projects, and lenders.
Hedging is a very well-known concept that possesses the quality of defending against the risk which is used by the investors in order to fence their portfolio against risk and losses. So, options trading is the best barricade which uses both “put and call” method and is the conventional approach in trading too, which is in use since many years in the financial sector by the investors to deploy against the assets, commodities, securities, derivatives when the price movement is highly volatile.
In fact, there are various other firms apart from Galaxy digital who are endeavoring crypto options trading facilities to the investors because this process has the potential to spread out the risk in the portfolio. These firms are also supporting over-the-counter (OTC) trading segment. The names are Akuna Capital and Cumberland, the Chicago-based cryptocurrency trading division of DRW Holdings LLC.
At press time, bitcoin sees the phenomenal surge and crossed its 10,000 bar. BTC is trading at $10,647 with a market cap of $189 billion and increased by 16.27% in the past seven days. With the flow of leading digital asset the other remaining alt coins also seen an upwelling command in the cryptocurrency space. Ether (ETH) is trading at $308.50 and signaling in green by 13.10%, Ripple (XRP) is at $0.471246, Litecoin (LTC), Bitcoin cash (BCH), EOS (EOS), Binance Coin (BNB), Bitcoin SV (BSV), Tether (USDT), Cardano (ADA) all are flaunting in green and growing from
Tags: Mike Novogratz, Galaxy Digital, Options Contracts Trading, Cryptocurrency, Blockchain, Bitcoin (BTC), Ether (ETH), Ripple (XRP), Litecoin (LTC) , Bitcoin cash (BCH), EOS (EOS), Binance Coin (BNB), Bitcoin SV (BSV), Tether (USDT), Cardano (ADA).