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BlockFills, a digital asset technology and trading firm focusing on institutional clients, has partnered with CoinDesk Indices to introduce options based on the CoinDesk 20 Index (CD20). The CD20 Index, established one year ago, tracks the performance of the top digital assets and caters to institutional investors looking for a broader range of tradable products beyond just bitcoin (BTC) and ether (ETH).
The introduction of options allows traders to speculate not only on the price direction of these assets but also on their volatility and time, adding professional-grade liquidity to the index. Options are financial derivatives that provide the buyer the right, but not the obligation, to buy or sell the referenced asset at a specified price within a set timeframe.
The launch of these options comes at a time when the cryptocurrency market is experiencing a bull run, largely driven by the growing institutional interest in bitcoin. This trend has led to increased adoption of crypto-related options and other investment products, such as spot ETFs.
Perry Parker, head of options trading at BlockFills, commented on the evolving market demands, stating, "As the digital assets market continues to mature, qualified institutional market participants are demanding a foundational reference index to trade, invest and measure performance.”
Institutional engagement with the new CD20 options is already underway. Hyperion Decimus, a digital asset manager and multi-strategy crypto fund, has conducted the first trade of these options earlier this month. Chris Sullivan, Principal at Hyperion Decimus, expressed enthusiasm about the new market offering, noting, "The BlockFills CoinDesk 20 index options market is a unique solution for professionals managing a portfolio within this asset class, and we are thrilled to kick off trading of the product."
Sullivan further mentioned that Hyperion Decimus plans to use the derivatives for both hedging positions and making directional trades, indicating a strategic approach to leveraging these new options within their investment framework.
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