Digital active ingredient technology and the trading company focused on the Blockfills institution is collaborating with Coindesk Indices to launch options related to the Coindesk 20 index (CD20).
The Coindesk 20 index, which made its debut a year ago, measures the performance of the main digital active ingredients, meeting the institutional demand for various negotiable products beyond Bitcoin (BTC) and ether (ETH) . The availability of options means that traders can speculate on volatility and time in addition to the price management, providing professional liquidity to the index.
The options are derivative contracts which give the holder the right to buy or sell the underlying asset at a predetermined price at the latest at a specific date. The Crypto Bull Run in progress, led by the institutionalization of Bitcoin, saw investors adopt options related to BTC and products related to crypto, including alternative investment vehicles such as ETF Spot.
“While the digital asset market continues to mature, participants in the qualified institutional market require a fundamental reference index to exchange, invest and measure performance,” said Perry Parker, head of options at Blockfills.
The institutions are already participating in CD20 options in Blockfills, with Digital Asset Manager and Multi-Tree Crypto Fund Hyperion Decimus performing the first transaction this month.
“The Coindesk 20 index Blockfills index option market is a unique solution for professionals who manage a portfolio within this asset class, and we are delighted to launch the product trading,” said Chris Sullivan, director of Hyperion Decimus.
“HD seeks to use the derivative for coverage and directional trades,” added Sullivan.
