min to read

2019-09-30 13:30:50


Fidelity will become a custodian for a fund based on bitcoin derivatives

Fidelity x BTC

min to read

2019-09-30 13:30:50

Investment giant Fidelity plans to become a castodian for a fund based on bitcoin options

Investment giant Fidelity plans to become a castodian for a fund based on bitcoin options, reports CoinDesk.


Los Angeles-based Wave Financial has launched ??? Wave BTC Income and Growth Digital Fund. Ben Tsai, the company's managing partner, said there were few "traditional types of products" based on digital assets on the cryptocurrency market.


A feature of the new fund is that it plans to generate monthly income from premiums on call options for investors. In addition, the fund will distribute dividends among investors, with annual returns of up to 18%.


According to Tsai, the fund may be of interest to more or less conservative investors who do not seek super-profits and serve as an excellent tool for diversifying a portfolio consisting mainly of traditional assets.


A call option is a financial agreement between two parties - the buyer and seller of this derivative. This instrument gives the right (but not the obligation, as in the case of futures) to the buyer of the option to purchase in future the agreed amount of the underlying asset at the price set in the contract (strike price) for a limited period or to refuse such a purchase. The seller must sell the item of the option if the buyer makes such a decision. The buyer pays the seller a premium for this.


It should be noted that derivatives based on cryptocurrencies are gradually gaining popularity. For example, not long ago the largest exchange Binance launched two platforms for futures products. At the beginning of 2020, bitcoin options on the regulated CME exchange should start trading.

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