The crypto investment bank owned by Mike Novogratz, the famous Bitcoin bull, is in the latest cryptocurrency news for a new plan. According to the industry media outlet The Block, the Galaxy Digital merchant bank is expanding its services to offer crypto options contracts trading.
In the report, we can also see that Galaxy Digital has made such decision in response to the increasing demand from institutional investors in order to hedge the high volatility that is a calling card for the crypto assets.
For those of you who don’t know, Bitcoin (BTC) options are a type of crypto derivatives which are a well known method of profiting from a highly volatile market by strategically hedging risks. Many best cryptocurrency news sites said that these risks include reducing portfolio risks – and in turn – losses from trading.
What’s also important to mention is the fact that there are two types of crypto options that can be bought – call options and put options. These translate to the right to purchase and the right to sell the holding at the determined price.
According to the global head of business development at the Galaxy Digital merchant bank, Yoshi Nakamura, crypto-related businesses such as mining firms and lenders have been expressing their interest to crypto options. In the altcoin news, we can see that these businesses are more open to this form of crypto trading. Still, the executive did not reveal specific numbers about this growth, adding that the business is “relatively new.
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Another executive from the crypto investment firm BlockTower Capital recently noted that the demand for crypto options has been increasing indeed, being primarily driven by non-crypto firms.
As the report also notes, the Galaxy Digital merchant bank is not the only firm that will offer crypto options. The service, as mentioned in the coming altcoin news, is already supported by many over-the-counter (OTC) trading operators including the names of Akuna Capital and Cumberland.
Meanwhile, it seems that high volatility is the main reason why people give up on cryptocurrencies. A report showed this, noting that more than 31% of the answers listed this reason for stopping the use of crypto.
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