As Mark Zuckerburg defended Libra in front of Congress, Bitcoin plummeted more than $500 in just five minutes.
But, before I had the chance to publish this post this morning, the market flipped, gaining back all of this week’s losses in less than an hour.
The market’s current volatility is a day trader’s dream, but not everyone has the stomach or the time to capitalize on the mood swings of crypto. Luckily, crypto is maturing, and with that, more sophisticated products are entering the market, giving people new ways to get skin in the game and hedge their risks.
Keep reading to learn about all the ways you can capitalize on the crypto market.
Bitcoin futures contracts are gaining popularity, especially in volatile markets. As Bitcoin fell Monday, trading volume on the newly launched Bitcoin futures exchange, Bakkt, hit a record high, with $4.8 million worth of Bitcoin traded.
Futures contracts allow individuals and institutions to invest at a set price on a set day, regardless of the state of the market on the execution date. Futures offer a hedge against the risk of the changing price of Bitcoin.
Following their record-breaking day, Bakkt announced its plans to launch the first regulated options contract for bitcoin futures.
Options let traders place buy and sell orders on an anticipated shift in the market. Currently, Bakkt only offers spot futures contracts, but says this launch is designed to “hedge or gain bitcoin exposure, generate income, and offer cost and capital efficiencies.”
Interest Bearing Accounts
Similar to the way you earn money for keeping cash in a bank account, you can now earn interest on the Bitcoin you own. This week, Voyager announced that we’re now offering 3% interest per annum on Bitcoin held on our platform. For a limited time, customers can also earn 5% interest on ETHOS (soon to be the Voyager Token).
This launch gives both traders and HODLers a new way to grow wealth in crypto. The Voyager Interest Program gives users the ability to trade actively and earn interest on their holdings at the same time.
Bitcoin Funds and Trusts
This week on CNBC, Mike Novogratz said that Galaxy Digital would be launching two crypto funds this year. According to Coindesk, the funds will give accredited investors low-fee, institutionally managed Bitcoin exposure.
Today, there are more ways than ever to invest in crypto, but this is just the beginning. As the market continues to grow, so will the regulated investment vehicles.
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Trading volume on Bitcoin futures exchange Bakkt has jumped suddenly today, as the crypto market takes a nosedive. According to a bot set up to monitor daily trading volume on the exchange, users have traded 296 bitcoins, worth $2.2 million, so far today. That's already three times more than yesterday's performance, which saw just 85 bitcoins ($720,000) traded. Read more.
Bitcoin prices shot up 12 percent Friday, climbing off a five-month low touched earlier this week, after Chinese President Xi Jinping said his countrymen should “seize the opportunity” afforded by blockchain technology. Read more.
Blockchain payments company Ripple has added former Counselor to the Secretary at the U.S. Treasury Department Craig Phillips to its board of directors. The move is designed to help the company make progress in a country showing resistance to blockchain technology in general. Read more.
Cryptocurrency platform Bakkt Trust Co LLC said on Thursday it will launch a regulated options contract for bitcoin futures on Dec. 9. Read more.