OTC Provider B2C2 Launches A Gold Derivatives Bitcoin Product

OTC provider B2C2 has launched a gold derivatives product that will synthetically trade against Bitcoin and the company says it is a very important step towards the evolution in the safe-haven asset trading space so let’s find out more about it in the latest bitcoin news today.

The OTC provider was launched in 2015 and received regulatory approval for crypto derivatives in the UK earlier this year. The company offers bulk crypto purchases via its API service. With the new product, the clients can physically settle synthetic trades with Bitcoin which will correspond with the physical gold stored in vaults. The positions combine various assets that will mimic the returns of another product without actually holding the product. The company explained that the benefit of this setup is that it is much simpler to trade than cash for various operations reasons and typically represents the majority of activity in the product. The clients can settle the trade with a number of cryptocurrencies and as the team put it:

 “These tokens will give them access to the underlying metal since they correspond to ownership of physical gold in vaults. The current macro environment, dominated by uncertainty over economic growth and inflation, is prompting central banks to rethink monetary policy and market participants to reassess the likely path of interest rates.”

Up to this date, the bitcoin price doubled and was followed by a 15 percent bump for gold which is currently standing at $1,500 per ounce. One of the representatives of the company added:

 “Conflicting narratives abound, fueling market activity, and we expect demand to only grow for ways to gain and manage exposure to deflationary assets such as gold and bitcoin.’’

However, as DC Forecasts previously reported in the blockchain latest news, Bitcoin’s recent price moves have not been fully indicative of the digital gold and how its proponents have rallied behind. The fears of a major U.S. recession have resurfaced in recent days and the pose a risk aversion that can quickly boost the prices of the gold. Bitcoin, on the other hand, has been very slow when it comes to picking up bids.