Galaxy Digital to launch crypto options contracts as demand increases
Mon, 24 Jun 2019, 06:41 am UTC
Galaxy Digital, the crypto investment bank of former hedge fund manager Mike Novogratz, has expanded its services, offering cryptocurrency options contracts trading, according to The Block.
Amid increasing demand from institutional investors, the new move aims to hedge the “inherent volatility risk” of cryptocurrencies, said Galaxy Digital’s global head of business development, Yoshi Nakamura, in an interview with the media outlet.
Bitcoin options are a kind of crypto derivative used to hedge against risks, especially in highly volatile and unstable markets. There are two kinds of options contracts, namely puts and calls, which respectively offer traders the right to purchase and right to sell the holding at a determined price.
Nakamura admitted that his firm’s options business is “relatively new,” although he expects that the interest for it will continue to surge.
As previously reported, Galaxy Digital recently participated in the Series A Funding of Spring Labs to address the issues of fraud in the auto financing sector using blockchain technology. Its subsidiary Galaxy EOS VC also supported the funding round of a blockchain-based service that runs on video game challenges called Azarus.
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