Portfolio/Basket Hedging

Yesterday, our strategic partners at Tagomi took an exciting step forward and received a BitLicense from NYDFS. This regulatory approval gives them the ability to onboard and do business with customers in the State of New York. In a CCN article published this morning, we discussed the importance of a “fair, transparent, and secure marketplace for larger players”, and how Tagomi and BitOoda are leading this charge. We are of the mindset that the Digital Asset space needs to continue it’s evolution in infrastructure, rules and regulations akin to more mature asset classes, and members must act in accordance with this governance if the market expects to grow. We will continue to direct our clients to platforms such as Tagomi, where they are able to receive the best prices in a transparent manner. If you would like to view their product, please reach out and we will help coordinate a time for you to receive a demo.

On a separate note, we have been picking up interest in options on cryptos other than BTC and ETH. Here are the options markets we worked late yesterday afternoon:

LTC U (9/27/19) $60 put 14.15/23.50
BCH U (9/27/19) $165 put 46.15/71.75
XRP U (9/27/19) $0.30 put 0.035/0.085
DASH U (9/27/19) $93 put 17.30/32.10

Each of these 4 options quotes were requested by one client, looking to protect the sum of his investments. Therefore, we constructed a basket/index of these 4 investments, and got an options quote on that single index (or basket) of investments:

BCH/LTC/XRP/DASH Basket (9/27/19) 75 Put 10.60/20.85

We believe it is important for traders/investors to realize BitOoda has the ability to construct these unique structured products AND have market makers provide liquidity for them. To hedge a portfolio or basket of cryptos can be an great tool for a fund to protect against losses, or even earn extra yield for a specific portfolio.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store