Swiss Firms to Let Traders Short Bitcoin With New Futures Products

Swiss bank Vontobel and Leonteq Securities announced that they will start trading Switzerland’s first two mini futures to short bitcoin on Friday.

AccessTimeIconNov 17, 2017 at 5:30 a.m. UTC
Updated Sep 13, 2021 at 7:10 a.m. UTC

Swiss asset management firm Vontobel will launch a new futures product designed to let customers bet against the price of bitcoin.

To be launched on SIX Exchange this Friday, the offering will enable investors to reap gains even if the bitcoin price plunges. According to Reuters, the company will release two mini futures, a type of derivatives instrument that represents a fraction of the value of standard futures.

According to Eric Blattmann, head of public distribution of financial products at Vontobel, the news comes at a time when traditional traders are simply looking for more options when it comes to trading cryptocurrencies.

He said in statements:

"We have seen big demand for our long tracker certificate from investors interested in playing the upside potential of bitcoin and now they have also the possibility to hedge their position or go short."

Along with Vontobel, Swiss investment solutions provider Leonteq Securities AG also announced the launch of a separate product that has a two-month maturity, Bloomberg reported today.

Likewise, in his statements, Manuel Durr, head of public solutions at Leonteq noted that clients "appreciate" the choice between a long or a short investment in bitcoin.

Indeed, the move comes amid an uptick in interest in cryptocurrency products among institutional investors. U.S. derivatives marketplace operator CME Group, for example, announced recently it would launch a bitcoin futures product, setting off speculation other firms may follow suit.

Already, New York-based startup LedgerX is offering live cryptocurrency futures trading, with $1 million traded in its first week.

Swiss Flags Image via Archives

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.