The Bitfinex two products referencing the two crypto derivatives contracts for the biggest European Equity companies and the German Equities will start trading today, as the CTO of Bitifnex Paolo Ardoino said. In our latest Tether crypto news today, we find out more about the products.
Bitfinex derivatives named two new products, types of perpetual contracts that are settling in Tether against the Europe 50 Stock Index and the Germany 30 stock index. Both of these products will start trading today as Paolo Ardoino said. A perpetual contract is a derivative swap-style contract that will reference the underlying security which in this case are the blue-chip companies in the Euro Stock Market against the value of the crypto security. The Bitfinex contracts are a swap between traditional equity and Tether which is a USD-backed stablecoin. Ardoino said:
“This is the first time that an exchange from the digital asset space has launched a product that bridges the gap with traditional stock markets, representing a significant milestone in the evolution of crypto as an established asset class. Notably, settlement is in Tether. This will facilitate the seamless settlement of cross-asset class trading strategies, hedging and the management of risk.”
Crypto derivatives are not new as the CME group, for example offers bitcoin futures and options on the futures but this is a first for a crypto exchange that delivers an equity-style swap product for the investors. Bitcoin and other cryptocurrencies are not usually correlated with the traditional stock markets as the price change is not related to the other so it is believed to be independent of each other. Bitfinex’s two new products could signal a change in this trend where the growth of the crypto market could have a strong impact on traditional equity products.
Derivative products could gain or lose value during the period of market volatility so they are risky investments. However, traders can use derivative products to help manage volatility and portfolio risks. It’s also important to keep in mind that Bitfinex is working to resolve the on-going lawsuit with the New York Attorney General office over the $900 million USDT valuation controversies. Bitfinex was unable to reach an agreement in this case but the representatives of the exchange said to be working to reach an agreement.
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