Bitcoin Certificate That’s Actively Managed Issued By Swissquote Bankbr>
Switzerland-based Swissquote Bank SA has released its actively managed bitcoin certificate, a new bitcoin exchange-traded product that aims to reduce risks imposed by the cryptocurrency’s volatility.
Swissquote Bank SA is a banking group specializing in the provision of online financial and trading services. The bank’s headquarters are located in Gland, Switzerland. The company also has offices in Zurich, Bern, Dubai, Malta, London and Hong Kong. The Group has 545 employees.
The actively managed bitcoin certificate offers investors a way to diversify traditional portfolios into bitcoin, but also integrates an algorithmic trading strategy designed to reduce volatility by increasing the amount of traditional currency in periods of uncertainties and downturns. This algorithmic trading strategy, developed by its Quantitative Asset Management department, is designed to create more consistent return potential in the long run.
Swissquote said it will allocate between 60% and 100% of its portfolio to bitcoin, depending on the confidence in the predicted future direction, in an effort to reduce the strong volatility. The rest is invested in US dollars. The exposure is limited to bitcoin and cash, minus a 1.5% management fee and trading costs. The bitcoin certificate will be listed on the SIX Swiss Exchange under the ticker symbol “SQXBTQ.”
“Investors are excited about cryptocurrency, but are unnerved by its volatility,” said Peter Rosenstreich, Head of Market Strategy at Swissquote Bank. “So we tried to build a trading algorithm that’s a protection against downside risks.”
In July, Swissquote launched a bitcoin trading feature. The feature allows customers to trade bitcoin with EUR and USD on its platform, with cryptocurrency exchange Bitstamp providing a full-stack solution.