Galaxy Digital, a cryptocurrency merchant bank of billionaire Mike Novogratz, announced that it has begun to offer cryptocurrency options to its institutional clients to hedge the risks associated with the volatility of digital assets, reported by The Block.
Thus, mining farms, cryptocurrency lenders and other major market players clearly demonstrated the demand for such derivative instruments in order to insure their capital.
Galaxy Digital considered that options are the best way to hedge risks in the event that investors are not sure of the direction of quotations. At the same time, the details in the crypto bank have not yet been disclosed, noting only that interest in such tools is constantly growing.
Managing Partner of investment firm BlockTower Capital Ari Paul stressed that demand for options from traditional financial market players is really noticeable, but such cryptocurrency giants as Polychain Capital or Pantera Capital, according to his information, do not interact with such tools at all.
Options trading is also offered by such firms as Akuna Capital and Cumberland.
Earlier, Galaxy Digital sold its stake in Block.one. Its value since investments has increased by 123% and amounted to 71.2 million.