Swiss Sygnum Bank Launches Regulated Digital Asset Options

Swiss Sygnum Bank Launches Regulated Digital Asset Options

by January 26, 2021

Sygnum Bank, a Swiss-based digital asset bank, announced that it has launched OTC options covering BTC/USD and ETH/USD trading pairs.

Sygnum’s regulated digital asset options offering will include; European OTC call and put options on BTC/USD and ETH/USD, fully customisable strike and expiry date with an attractive minimum trade size, long and short positioning as well as cash settlement.

These offerings provides a trusted venue for investors to implement similarly sophisticated investment and trading strategies for their digital asset portfolios as they already have for their traditional asset portfolios.

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The options offering is said to be highly flexible and can be employed in diverse trading strategies, enabling buyers to participate in larger price swings while sellers can generate additional yield from collecting option premiums.

By paying the option premium, buyers can participate in larger price swings, while sellers leverage elevated volatility levels and collect premium payments to generate additional yield on existing holdings.

With the increase in value of leading digital assets like Bitcoin, which saw its volume of traded options increase 7 times in 2020 and the ever-increasing number of institutional investors entering the space, the market demand for options on digital assets is growing significantly.

Dominic Lohberger, Head of Brokerage at Sygnum Bank Digital Asset

Dominic Lohberger

“With options, clients can now profit from any price movement – be it a bull, bear or sideways market. They can also be used to hedge positions, take leveraged exposure to the market or trade volatility,”

said Dominic Lohberger, Head of Brokerage at Sygnum Bank.


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