Hedging program: turning Bitcoin risk into an opportunity
“Control risk, returns will take care of themselves”
— Joris Bastien
A new dynamic hedging program allowing a safe exposure in cryptocurrencies has been announced by our partner Optiminvest, a company founded by Globcoin CEO Helie d’Hautefort. The main objectives of the program are risk reduction and return improvement.
By dynamically hedging the crypto exposure, this program reduces volatility in two ways: 1) enabling crypto holders to benefit from favourable market movements and 2) protecting its value during adverse market movements.
Who needs protection against volatility?
This new crypto hedging service will be ideal for all crypto holders, especially:
- Miners who get their revenues in crypto but need to convert them to fiat to pay operating expenses such as rent, salaries, electricity, etc.
- Service providers who charge their fees in crypto but are taking the risk of BTC/Fiat price.
- International investors who want to allocate to crypto assets but often do not have access to hedging techniques for rainy days.
- Projects that are raising a significant amount of capital in crypto, but are facing expenses in fiat currencies.
How does the program work?
By dynamically hedging the crypto exposure, the program reduces the risk in crypto-fiat conversion. The hedge ratio is fully systematic, managed according to quantitative systems, and implemented as a managed account at a broker or any platform, previously agreed by the client and the management team. A detailed IMA (Investment Management Agreement) describes the guidelines. The objective is to limit downside loss in case BTC prices drop, while removing the hedge to participate in upside price movements. Read more about it here: optiminvest.ch/services
A team of industry veterans
Since its foundation, Optiminvest has been offering a unique experience in currency management, by systematically extracting value from the currency market using mathematical and statistical methods. During a successful 10 years’ partnership with BNP Paribas under the name of “Overlay Asset Management”, the active currency hedging programs reached USD 23 billion, ranking the company in the top 5 currency overlay managers in the world. In 2016, they jumped into the digital currency world and launched from Zug (Switzerland) and London various crypto related services .They were the first company to tokenize a currency basket in December 2018.
Not only is the original team unparalleled in the industry, they’re also bringing the best people to add their expertise to the program. For example, a second quantitative system is being developed by Joris Bastien, founder of Quantaraxia, an independent investment advisor that offers a unique investment framework based on more than 15 years of research in diversified investment contexts.
The combination of a large experience in active hedging and the deep knowledge of the BTC ecosystem bring the best of both worlds to this new Program. For more information contact Optiminvest at info@optiminvest.ch
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