Spectrum Markets has announced the launch of Bitcoin and Ethereum turbo certificates. These are institutional-grade turbo warrants that allow you to hedge against volatility risks.
Delighted to announce our product offering now includes #cryptocurrencies as an underlying, with turbo warrants on #Bitcoin and #Ethereum available on-venue, 24/5. Find out more here: https://t.co/8gkNqykdP6 pic.twitter.com/i4Jy6wrU5V
— SPECTRUM MARKETS (@SpectrumMarkets) May 4, 2022
Spectrum Markets and new certificates on Bitcoin and Ethereum networks
Spectrum Markets is based in Frankfurt, Germany, and is a pan-European trading venue for securitized derivatives, targeting financial institutions and their retail investors.
The exchange is regulated by the German government agency BaFin, and is MiFID compliant. It operates 24 hours a day, 5 days a week.
With the new Bitcoin and Ethereum turbo certificates, financial institutions can offer their retail clients long and short leveraged exposure to BTC and ETH.
The new products expand Spectrum’s existing suite of Turbo24 warrants, allowing brokers to offer their clients more secure price exposure to the two most popular cryptocurrencies, while better controlling their volatility risks.
According to Spectrum, this is the first time worldwide that financial institutions can offer their European retail clients access to cryptocurrency turbo warrants.
The advantages of the new turbo certificates
In particular, the advantage of these regulated instruments that can be traded on institutional platforms is that they allow trading overnight, i.e. when traditional markets are closed. In fact, not only do many retail investors trade while traditional markets are closed, but above all the volatility risk associated with crypto trading is very high if you cannot trade 24 hours a day.
Furthermore, the use of derivative products also means that investors do not have to worry about the physical custody of tokens.
Turbo warrants in particular are equipped with a knock-out function that allows positions to be closed automatically when the underlying asset reaches a specific price. This allows investors to limit their exposure in case of problems. 24-hour trading also reduces gap risk in this context.
Finally, the ability to take short positions allows investors to benefit from price declines as well as providing a means to hedge long exposures.
Spectrum Markets CEO Nicky Maan said:
“We are proud to continue our track record of innovating to provide a better way for Europe’s retail investors, and this launch responds to very strong demand for versatile exposure to cryptocurrencies.
As well as being an easy way to access cryptocurrencies via their broker with a limited outlay, the Turbo24 products provide investors with tools to hedge exposure and better control their risk in what is, after all, a highly volatile asset class. We firmly believe there will continue to be a role for digital assets in retail investor portfolios, and we look forward to introducing further innovations and opportunities in this space”.