The first Bitcoin Certificates: Would you give a part of profit for less risk?

The first kryptocertifikatet is to reduce the risk of THE volatility

An online provider, Swissquote, has announced the launch of its first actively managed Bitcoin investment certificates, which will be available through the swiss stock exchange SIX. However, it is not the first groundbreaking step in the digital valutaindustrin.

Portfolio based on Bitcoin and the US dollar

According to the department’s official press release is the purpose of the launch of the Bitcoin-certificates that give investors the ability to trade on the innovative instruments based on traditional financial mechanisms in the regulated capital market. By acquiring certefikatet and have real kryptovalutor is the exposure to risk is much less and can still benefit from high returns.

Variants of certificates is reduced using an algorithm developed by Swissquote based on machine learning. Its goal is to predict short-term BTC-movements and future profits, by interpreting a variety of technical signals and sentiment in social media. After the collection of relevant information matches the algorithm of the asset in the certificate. As a result, Bitcoin is distributed between 60% and 100%, depending on the system’s forecasts. If those would fall can the dollar’s position to increase to a maximum of 40%, which reduces the kryptanalysorns volatility.

”While we believe that Bitcoin is finansens future, the current volatility will be very high, and considered by many investors to excessive risk. Therefore, the strategy is aimed at limiting the volatility by changing the portfolio to the u.s. dollar in times of extreme uncertainty, ” says Peter Rosenstreich, head of marketing strategy at Swissquote.

Bitcoin-investeringscertifikaten offered by the department are denominated in dollars. Minimibidraget is USD 1 000 and the management fee is 1.5% per year.

”With the certificate receives the trader a regulated and transparpent ticket to the world of Bitcoin without having a kryptoportfölj, the management of private and public keys, etc We expect that investors will be able to receive slightly lower returns in exchange for better protection in the event of a strong downturn, ” says Rosenstreich.

Swissquote is the first bank who introduces trading with kryptovalutor

As previously mentioned in the introduction is AQ-the certificate is not the first Swissquote-the adventure with the kryptovalutor. In July, the company announced the launch of Bitcoin, which made it Europe’s first online bank to offer its customers access to the kryptovalutor.

Marc Burki, Swissquote chair, commented on the latest budändringarna: ”Many investors are increasingly interested in kryptovalutor, but are afraid to invest because of the low trust between the BTC and the like. As a swiss bank, we give consumers a simple and transparent kontounderhållsprocess, without foreign transfers to unknown locations and a guarantee for the safety of funds.”

Leave a Reply