GSR Completes Options Transaction with St. Gotthard Wealth

Crypto Trading Firm GSR Completes Options Transaction with St. Gotthard Wealth

Crypto trading firm GSR announced the successful completion of an options transaction based on the CoinDesk 20 (CD20) Index with asset manager St. Gotthard Wealth, headquartered in Zug.

Power of Options in Managing Risk and Volatility

“Options are a powerful tool for managing risk and volatility,” stated Rich Rosenblum, co-founder and co-CEO of GSR. He expressed enthusiasm about GSR’s role in expanding the options market.

The CoinDesk 20 Index

Launched in January, the CoinDesk 20 (CD20) Index serves as a benchmark for the cryptocurrency market, measuring the performance of the largest digital assets. Key constituents of the CD20 include bitcoin (30%), ether (19%), SOL (19%), and XRP (7%).

Derivatives Market for Crypto Indices

According to Ruchir Gupta, head of options and treasury at GSR, derivatives on crypto indices like CD20 provide investors with a means to manage exposure to the broader market efficiently. This fills a gap in the market where investors previously lacked options to hedge against or speculate on the overall crypto market performance.

Growth of Futures Market and CD20

A vibrant futures market is considered essential for options trading. Bullish, the cryptocurrency exchange that owns CoinDesk, offers perpetual futures contracts linked to the CD20. Over the past six months, the CD20 index has seen approximately $6 billion in perpetual futures volume, indicating growing interest and activity in this market segment.

Market Performance and Trading Activity

As of the latest update, the CD20 index traded above 2,000 during the Asian Wednesday business day, reflecting a 2% increase in the last 24 hours. This demonstrates the market’s resilience and potential for further growth.