Zerocap, an Australian digital assets market maker, has partnered with CoinDesk Indices to introduce Australia’s first options-based structured products linked to the CoinDesk 20 Index (CD20). The announcement was made at Consensus Hong Kong, marking a significant development in the cryptocurrency market.
A New Investment Strategy for Digital Assets
This partnership introduces sophisticated and tailored investment strategies typically seen in traditional markets, setting a new precedent for the cryptocurrency industry. It provides institutional investors and other sophisticated market participants with a chance to gain diversified, risk-managed exposure to digital assets beyond just Bitcoin and Ether.
The new product offers features such as downside protection, volatility management, and yield enhancement, addressing the growing demand for scalable and diversified cryptocurrency products in the institutional space.
Increased Demand for Institutional-Grade Crypto Products
The launch of this offering reflects the rising interest in institutional-grade cryptocurrency products, particularly after the debut of spot ETFs in the U.S. last year. The CoinDesk 20 Index has shown impressive performance, rising 456% over the past five years, and provides a diversified alternative to the traditional 70/30 Bitcoin-Ether portfolio split.
“This partnership with CoinDesk Indices brings sophisticated, structured options to the crypto market for the first time, offering our clients enhanced ways to invest in digital assets with tailored risk and diversification benefits,” said Mark Hiriart, Head of Sales at Zerocap.
CoinDesk 20 Index: A Diversified Alternative
The CoinDesk 20 Index expands exposure beyond Bitcoin and Ether by including other leading crypto assets, making it a more diversified investment vehicle for those seeking broader digital asset exposure.
Alan Campbell, President of CoinDesk Indices, emphasized that the CoinDesk 20 Index meets the increasing demand for diversified digital assets exposure. He noted that Zerocap’s launch of structured products tied to the index is a major milestone in serving a global clientele.
This partnership marks a crucial step in advancing the cryptocurrency investment landscape, offering more sophisticated tools for managing risk and diversifying portfolios.
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