DBL Digital, a division of DrawBridge Lending, a CPO and CTA with a market and credit based approach to digital asset investing and lending, announced the release of its Bitcoin Managed Account Program (MAP) for individual and institutional investors.
The Bitcoin MAP produces enhanced yield within a separately managed account utilizing long bitcoin futures with an option overlay. The program provides investors with exposure to the Crypto market in a risk-mitigated fashion, although virtual currency futures and options on futures present several risks related to the underlying virtual currency that should be considered prior to trading them (see the risk disclaimers below).
The program targets overlay returns at a specific upside call price and offers a hedge against bitcoin price declines. Tenors of 1 to 6 months are currently offered. Fintech News
“Enhanced levels of volatility in Cryptocurrency markets have created exciting investment opportunities through traditional options strategies,” said Jason Urban, CEO of DBL Digital. “We’ve developed the Bitcoin MAP to give investors exposure to Crypto along with an opportunity to capture enhanced returns on the price of bitcoin.”
The Bitcoin MAP will never have to meet a variation margin call. All positions in the program are cleared at CME Clearing or ICE US Clearing and the only cost to the investor is a performance fee. Bitcoin MAP investors retain ownership and price risk of the bitcoin futures, both up and down.
The firm also offers Accredited and Eligible Contract Participant (ECP) investors with additional opportunities through options hedging strategies to create yield on bitcoin held in a segregated wallet at a qualified custodian in cold storage.
All DBL Digital programs provide clients with a white glove service experience, operating within full risk mitigation and compliance.
