Digital currency options attract attention, hedge funds spend millions of dollars to buy call options

5 years ago
This article is approximately 368 words,and reading the entire article takes about 1 minutes
In order to survive in the collapsing crypto market, crypto mining companies and crypto investors began selling derivatives related to digital currencies.

Editors Note: This article comes frombloomberg,author:Alastair Marsh

Translator: Cha Liang

Editor: Lu Xiaoming

Digital currency options attract attention, hedge funds spend millions of dollars to buy call options

Editors Note: This article comes from


Translator: Cha Liang

Editor: Lu Xiaoming

According to Bloomberg, in order to survive in the collapsing encryption market, encryption mining companies and encryption investors began to sell derivatives related to digital currencies, so as to squeeze out some income from depreciating digital assets. This is the price they pay for surviving the “crypto winter”.

These crypto survivors are using traditional financial tools to sell their cryptocurrency derivatives in exchange for more fiat currency in order to survive in the bear market.

Sam Bankman-Fried, CEO of Alameda Research, a digital asset quantitative trading company in San Francisco, said: During the 2018 bear market, any company with a token reserve could see their business development severely constrained by the price volatility of cryptocurrencies. Having enough cash on hand is critical to the survival of these companies if the price of digital currencies falls.”

As a large number of experienced traditional financial professionals enter the field of digital currency, the trading tools of digital currency have begun to diversify.

Crypto mining companies and those that benefited from the ICO funding boom of 2017 will have to get creative to keep the market going. They are digital currency derivatives (similar to covered call options, covered call options are call options for selling stocks while buying stocks, or selling call options for a stock currently held by investors, Popular among traditional stock investors) one of the leading sellers.

More and more financial professionals working on Wall Street have given up the traditional financial field and started to turn to encryption technology, which has promoted option trading to become popular in the encryption field. Among them, QCP Capital and Akuna Capital are worth mentioning.

While bitcoin futures, which launched in late 2017 and trade on open markets managed by regulated firms such as CME Group Inc., began six months ago when most options trades were in private bilateral contracts. Meaning official statistics are hard to come by.

Covered calls are suitable for those looking to earn some income from existing holdings. They limit sellers ability to benefit from price increases beyond a certain point, so most of the real gains go to buyers.

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ODAILY reminds readers to establish correct monetary and investment concepts, rationally view blockchain, and effectively improve risk awareness; We can actively report and report any illegal or criminal clues discovered to relevant departments.

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