Institution-focused digital asset technology and trading company Blockfills are collaborating with Coindesk indexes to launch settings tied to the Coindesk 20 index (CD20).
Coindesk 20 index, which debuted a year ago, measures the performance of leading digital assets, catering for institutional demand for various marketable products in addition to Bitcoin (BTC) and Ether (ETH). The availability of options means that dealers can speculate on volatility and time beyond price direction, bringing professional liquidity to the index.
The options are derived contracts that give the holder the right to buy or sell the underlying asset at a predetermined price of or before a specific date. The ongoing Crypto Bull Run, led by the institutionalization of Bitcoin, has seen investors embrace options tied to BTC and crypto-bound products, including alternative investment vehicles such as Spot ETFs.
“As the market for digital assets continues to mature, qualified institutional market participants require a basic reference index for trade, investment and measurement of performance,” said Perry Parker, head of options acting on Blockfills.
Institutions are already participating in Blockfills’s CD20 settings, with Digital Asset Manager and Multi-Strategy Crypto Fund Hyperion Decimus, performing the first transaction this month.
“Blockfills Coindesk 20 -Index Market is a unique solution for professionals administering a portfolio within this asset class and we are happy to start trading in the product,” said Chris Sullivan, principal at Hyperion Decimus.
“HD is trying to use the derivative for both cover and directional trades,” Sullivan added.
