GSR, a specialist in market making and algorithmic crypto assets trading, has launched a new structured product called the Bitcoin Halo Option aimed at allowing investors to manage and limit some of the risk of their cryptocurrency trades.
The GSR Bitcoin Halo is an option on the value of a trading account once the derivative reaches its maturation date. The holder of this derivative pays an initial premium to purchase the Bitcoin Halo Option, which begins the maturation period with a value of zero. Each trader is allowed to place 10 trades per day in the BTC/USD markets through GSR, until the derivative termination date is reached. At maturity, if there is any positive value remaining from the trades performed, then the trader collects this surplus. If there is a negative value, then the trader receives nothing at the end of the term.
“Unlike most traditional financial markets, trading in cryptocurrency is open 24/7 and positions require constant supervision,” says Cristian Gil, Co-Founder of GSR. “The GSR Bitcoin Halo Option is essentially a tool for active traders who want to protect against serious losses. At GSR, we’re excited to continue introducing innovative new products into the world of digital assets that are prevalent in the world of traditional finance. As the crypto markets continue to develop and attract more traders these types of products and services will be a necessity.”
This new innovation in the cryptocurrency space joins other new digital asset products released by GSR, like their Cryptocurrency Variance Swap. This new option is part of a suite of financial products that GSR is structuring to offer traders more protection against volatility in the crypto trading industry. The GSR Bitcoin Halo Option offers another way for active traders to manage their risk in a manner that is less time consuming, and more financially secure.
