Switzerland-based companies Vontobel and Leonteq Securities AG are launching separate futures products that will allow customers to bet against the price of the leading cryptocurrency Bitcoin.
The product launchings come amidst the growing interest in digital currency products among institutional investors.
Based on a report by Reuters, asset management company Vontobel will introduce two mini futures products, which are a type of derivative instrument that represents a fraction of the value of standard futures. The products will be launched on the SIX Exchange in mid-November 2017.
According to the company’s Head of Public Distribution of Financial Products, Eric Blattmann, the products aim to satisfy the demand for more options by traditional investors in the field of cryptocurrency trading.
"We have seen big demand for our long tracker certificate from investors interested in playing the upside potential of Bitcoin and now they have also the possibility to hedge their position or go short."
Leonteq Securities’ offering
Investment solutions provider Leonteq Securities AG, meanwhile, has announced the scheduled launching of its Bitcoin futures product, which has a two-month maturity. The product will also be listed on the SIX Exchange.
In his statement, Leonteq Securities Head of Public Solutions, Manuel Dürr, said that the customers appreciate the possibility of choosing between a long and a short investment in Bitcoin.
“The initial feedback has been extremely positive. Clients do very much appreciate the possibility of choosing between a long or a short investment in Bitcoin.”
Growing popularity of digital currency products among institutional investors
The launching of the new Bitcoin futures products by the Swiss firms comes amidst the growing interest by institutional investors on virtual currency products.
Just recently, US derivatives marketplace operator CME Group announced that it will introduce a Bitcoin futures product in the near future. Startup Ledger X of New York, meanwhile, is already offering live cryptocurrency futures trading at its platform.