BlockFills and CoinDesk Indices Launch CoinDesk 20 Index Options, Enhancing Liquidity for Institutions
BlockFills, a prominent digital asset trading and technology firm catering to institutional clients, has teamed up with CoinDesk Indices to introduce a new options market tied to the CoinDesk 20 Index (CD20). This development aims to provide institutional traders with more diverse and liquid trading opportunities in the digital asset market.
Launched a year ago, the CoinDesk 20 Index tracks the top 20 digital assets by market capitalization, offering a broader view of the crypto market beyond just Bitcoin (BTC) and Ether (ETH). The addition of options to the index allows traders to take positions on price movements and market volatility, offering more tools for managing risk and exposure in the cryptocurrency market.
Options, which give traders the right (but not the obligation) to buy or sell an asset at a specific price before a designated date, have gained popularity in the crypto market, particularly among institutional investors seeking to hedge risks and speculate on future price action. With Bitcoin and other crypto-linked products like spot ETFs on the rise, the introduction of CoinDesk 20 options is expected to further cement crypto’s place in institutional portfolios.
“As institutional interest in digital assets continues to rise, having a reliable and liquid benchmark is essential,” said Perry Parker, Head of Options Trading at BlockFills. “The CoinDesk 20 Index options provide exactly that, offering traders more sophisticated tools for managing their exposure to the crypto market.”
The first trade executed on the CoinDesk 20 options market came from Hyperion Decimus, a multi-strategy crypto fund. The trade is particularly noteworthy as it represents the first over-the-counter (OTC) options contract based on a digital asset index with an onshore counterparty in the U.S., marking a milestone for the OTC derivatives market in the country.
Chris Sullivan, Principal at Hyperion Decimus, expressed excitement about the new market, saying, “The CoinDesk 20 options give professional investors a much-needed liquid, diversified benchmark to manage their portfolios more effectively. This development opens up more opportunities for both risk management and speculation.”
The launch of these options marks an important step forward for institutional involvement in the digital asset space, providing new ways for investors to navigate the evolving market.
