Sygnum Bank today announced the launch of its OTC options for BTC / USD and ETH / USD trading pairs.

Sygnum’s regulated option offering provides investors with a trusted place to implement similarly sophisticated investment and trading strategies for their digital wealth portfolios as they have already done for their traditional wealth portfolios. The options offering is very flexible and can be used in various trading strategies, allowing buyers to participate in larger price fluctuations, while sellers can achieve additional returns by collecting option premiums.

Sygnum’s regulated range of digital asset options includes:

European OTC call and put options for BTC / USD and ETH / USD

Fully customizable strike and expiration dates with an attractive minimum trade size

Long and short positioning

Cash settlement

Sygnum customers can now implement more sophisticated investment and trading strategies for digital assets

Options have long played an important role in traditional financial markets as a tool that allows investors to navigate unpredictable market conditions. By paying the option premium, buyers can participate in greater price fluctuations, while sellers take advantage of the increased volatility and collect premium payments to generate additional returns on existing holdings.

With the increase in the value of leading digital assets like Bitcoin, where the volume of options traded increased seven times in 2020, and the steadily growing number of institutional investors entering the space, the market demand for options on digital assets is growing significantly. As a regulated Swiss bank, Sygnum already offers a trustworthy platform through which investors can invest in and trade in digital assets. With the availability of options, clients can now implement more sophisticated investment and trading strategies for their digital asset portfolios.

“With options, customers can now benefit from any price movement – be it a bull, bear or sideways market,” said Dominic Lohberger, Head of Brokerage at Sygnum Bank. “They can also be used to hedge positions, take a leveraged exposure to the market, or deal with trading volatility,” he adds.

Driving the rapid development of the digital asset space

Sygnum’s range of options offers a wide range of functions that can be tailored to the needs of each customer, e.g. B. Fully customizable strike and expiration dates, as well as long and short positioning. This is yet another example of the rapid evolution of investing in digital assets, offering investors the same investment and hedging tool that has been tried and tested in other asset classes for decades. Sygnum is shaping the regulated digital assets industry in many areas and is actively seeking to empower other incumbent financial institutions to enable their end customers to capitalize on the seemingly endless possibilities of regulated investments in digital assets.

“At Sygnum we are building a portfolio of regulated banking services that make the universe of digital assets bankable, conveniently accessible and completely trustworthy. Our expansion of options closes the gap for a regulated offering in this area and further expands our product suite to meet the complex requirements of an increasingly institutional customer base, ”said Thomas Eichenberger, Head of Business Units at Sygnum Bank.