GSR Launches Bitcoin Hedging Product - Bitcoin Variance Swap

GSR, an algorithmic digital assets trading and market making firm, announced this Wednesday that it has launched a new product - Bitcoin Variance Swap, which allows hedging against Bitcoin volatility.

The volatility in the cryptocurrency market is well known; in fact, it is a key characteristic of the trading environment. Although this volatility can lead to great highs, it can also mean big losses for crypto traders.

Crypto volatility is also one of the key reasons that both individual and professional investors are wary of entering into the space. Already this year in April, Bitcoin experienced a 200 percent increase in volatility.

GSR Allows Traders to Protect Against BTC Volatility

This where the Bitcoin Variance Swap comes in, to help traders protect themselves against the highs and lows, as it allows traders to purchase and hedge their digital asset portfolio against Bitcoin volatility during price fluctuations.

Commenting on the new product, Cristian Gil, Co-Founder of GSR said: “We are introducing a new product into the world of digital assets that allows traders, investors, businesses or anyone who holds a serious portfolio, to hedge against and take advantage of one of the most common and intimidating parts of crypto markets: volatility.”

“While GSR is a veteran in this space, many of the financial instruments that are common in traditional finance have not made their way to the digital asset space. We believe that this product will be a mainstay of portfolio managers in the months and years to come.”

Founded in 2013, GSR is a leading player in digital asset trading and market making. Since its inception, the company has traded and managed billions of dollars worth of digital assets through its unique software.

Cristian Gil will be speaking at our upcoming event, the Barcelona Trading Conference in July on the Understanding Crypto Market Structure: Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term in Focus panel. Here, Gil, along with fellow panel members will discuss the challenges for Liquidity Providers Liquidity Providers A liquidity provider (LP) constitutes an individual and/or an institution that functions as a market maker in a given asset class. Broadly speaking, liquidity providers will act as both the buyer and seller of a particular asset, thus making a market. In the equities space, many stock exchanges rely on liquidity providers who make the commitment to provide liquidity in a given equity. These liquidity providers commit to providing liquidity in the hopes that they will be able to make a profit on A liquidity provider (LP) constitutes an individual and/or an institution that functions as a market maker in a given asset class. Broadly speaking, liquidity providers will act as both the buyer and seller of a particular asset, thus making a market. In the equities space, many stock exchanges rely on liquidity providers who make the commitment to provide liquidity in a given equity. These liquidity providers commit to providing liquidity in the hopes that they will be able to make a profit on Read this Term in the crypto space, what regulation exists in this space and more.