OrBit Markets, a leading liquidity provider for cryptocurrency options and futures trading, has recently expanded their product offerings to include a hybrid derivative product that combines Bitcoin and Gold. This unique product provides traders with the ability to benefit from the characteristics of both assets, adding diversity to their trading portfolios.
According to the company, the Bitcoin/Gold hybrid derivative product was developed in response to market demand for a diversified trading strategy. As the cryptocurrency market matures, traders are looking for ways to hedge against volatility and diversify their holdings.
The new hybrid derivative product allows traders to own both Bitcoin and Gold with a single instrument. The product is designed to follow the performance of both assets, with the value of the derivative moving up or down with changes in the prices of Bitcoin and Gold.
Traders who are bullish on both assets can benefit from the upside potential of Bitcoin, while also having the protection of holding Gold. On the other hand, traders who are bearish on Bitcoin can also benefit from the downside of Gold.
Paul Gordon, the CEO of OrBit Markets, explained that the hybrid derivative product offers a unique value proposition to traders. “We believe that a combination of Bitcoin and Gold provides a balanced and diversified investment solution that can deliver long-term returns while mitigating risk,” he said.
OrBit Markets is committed to providing traders with the best possible experience and has been investing in technology to improve trading performance. The platform offers a high-performance matching engine that can handle thousands of orders per second. Moreover, OrBit Markets is one of the few exchanges with real-time margin calculations, which helps traders closely monitor their positions and risk.
The company also puts a strong emphasis on security, and all customer assets are held in cold storage wallets that are stored in secure vaults. Additionally, the platform uses multiple layers of authentication and has strict Know Your Customer (KYC) procedures in place to prevent fraud and protect customers.
Traders who are interested in the new hybrid derivative product can access it through the OrBit Markets platform. The company offers competitive pricing, low fees, and an intuitive user interface. The platform is accessible from any device or location, making it easy for traders to manage their positions on the go.
While the cryptocurrency market can be volatile, OrBit Markets is working hard to ensure that traders have access to the tools and products they need to succeed. By offering a Bitcoin/Gold hybrid derivative product, the company is providing a unique solution that could help traders mitigate risk while maximizing returns.
In conclusion, OrBit Markets has demonstrated its commitment to innovation and has once again expanded its product offerings to meet customer demand. The introduction of the Bitcoin/Gold hybrid derivative product is a significant step forward for the company and the industry as a whole. It is likely that other exchanges will follow suit and offer similar products, providing more opportunities for traders to benefit from the exciting world of cryptocurrency derivatives trading.
Orbit Markets has developed a gold and bitcoin hybrid derivative product, created in collaboration with execution broker PI Digital. The product, called XAUT, is a gold-backed token issued by Tether. At maturity, it will be settled in USDT, XAUT or bitcoin, according to Singapore-based Orbit. The asset has been launched to offer investors exposure to two leading “safe haven” assets, to provide steady returns during periods of macroeconomic uncertainty. The companies aim to create a flexible solution that will appeal to investors with traditional experience in gold, seeking access to digital assets.
As concerns grow about the U.S central bank’s hawkish monetary policy and resulting turbulence in the banking sector, investors are looking for investments that will hold their value. Hybrid asset products are not new to traditional financial services companies, and the development of similar solutions for crypto investments appears to be the current driver of the digital economy.
According to Orbit, the XAUT product is designed to give investors a dual option on both BTC and XAUT, allowing investors to cover sophisticated views of bitcoin and XAU token returns. The product can be used to monitor different investment outcomes, including increases or decreases in returns for both assets, or if returns for one of the assets climb while the other falls.
The option also covers a “worst-of-put option” which guarantees that, if any underlying asset falls, the investor is “put” into the worst performer. Otherwise, the investor will receive an enhanced yield. The launch of XAUT is the first hybrid-focused derivative product that aims to offer investors transparency, accessibility, and liquidity in one package. Other derivatives will follow.
OrBit Markets provides institutional liquidity to options markets for digital assets. The company aims to develop similar hybrid products that will appeal to institutional investors, as it seeks to provide flexible solutions to its trading counterparties. Its parent company, Orizaba Global, is a proprietary trading company that specialises in exchange-traded futures and options, and focuses on flow-oriented G7 interest rate derivatives.
In conclusion, the launch of Orbit’s gold/bitcoin hybrid derivative product is a nod to the crypto industry’s thriving adaptation to traditional financial products. The development mirrors TraFi’s hybrid offerings, such as solutions that combine stock and commodity assets. Investors are seeking investments that will hold their value, and XAUT aims to do that by being transparent, accessible and liquid with the added benefit of providing a worst-of-put option to investors. The continued development of hybrid product solutions is a testament to the digital economy’s drive towards creating products that are stable, flexible and profitable, while also being able to stand up to tougher market conditions.