New Bitcoin Variance Swap Product Launches by GSR as a Volatility Hedging Service for Traders
The GSR has announced that they have launched a new product, the Bitcoin Variance Swap, one that has been designed to allow hedging against the Bitcoin volatility.
The GSR has been established as an algorithmic digital asset trading together with a market-making firm.
The crypto market
The market has been known by many to be very volatile; it is actually being considered to be among the key characteristics that are within the environment. As we have seen the volatility in the market is able to lead to more significant highs, a good time for the investors, but it could also lead to huge losses within the market.
As a result, it is the main reasons as to why the individual and professional investors within the crypto space are a little wary of entering into it a little deeper.
At the moment, we have already witnessed the Bitcoin entering into a 200% increase in its volatility. Thus, this is where the company was able to think outside the box and create a solution for the investors within this space.
There are benefits to be enjoyed from the Bitcoin Variance Swap
It has been designed in a manner it will help traders to easily protect themselves from the highs and lows witnessed in the market. As an investor, you will be able to purchase and also hedge on the digital asset portfolio against the volatility of the Bitcoin.
All this takes place at the time the market is experiencing price fluctuations. Therefore, you are able to hedge and take advantage of the volatile market. The Co-founder of the GSR commented on the new product and the benefits it is able to offer the traders.
“We are introducing a new product into the world of digital assets that allows traders, investors, businesses or anyone who holds a serious portfolio, to hedge against and take advantage of one of the most common and intimidating parts of crypto markets: volatility.”
The GSR has done its research on the market
The GSR has been considered to be a veteran within this space, so you should expect to see a well-researched product being offered to the market.
Most of the instruments that are used in the traditional finance systems have not been able to able to make their way into the crypto space, but with this new project, it should be able to make headway in the coming years.
The company was founded back in 2013; thus it has acquired the needed experience and understanding of the market; as a result, it has been considered to be a leading player when looking at the digital asset space. The company has been able to trade and manage billions of dollars thanks to its unique software design.