Wintermute Asia, a crypto derivatives trading firm, has expanded its access to the oneZero network to include spot and CFD products.
CFDs are a recent addition to Wintermute’s OTC derivatives products, according to Wintermute Asia. They were initially introduced in March. The market maker reported that trading volumes have experienced substantial growth, surpassing threefold by June.
CFDs are a form of derivative product. Speculation regarding the future trajectory of a market’s price is possible through a contract for difference (CFD).
Banks and financial institutions utilize the oneZero network, which is a transaction technology network.
Hedge Risk in Cryptocurrency CFDs
“The consistent growth in crypto adoption and the market momentum of this year is fueling a surge in interest in crypto trading.” The introduction of OTC-cleared derivatives, such as crypto CFDs, to enhance returns and mitigate risk is partially responsible for this interest, according to Evgeny Gaevoy, CEO of Wintermute.
To safeguard investments from market fluctuations, confident investors may opt to mitigate risk using CFDs. This entails adopting an opposing stance in a CFD to the one in which one is invested to minimize a partial potential loss.
“We have observed a substantial increase in the number of traditional FX market participants, including banks and brokers, who are now pursuing top-tier liquidity providers,” stated Gaevoy.
Wintermute reported implementing multi-currency collateral support, which enables counterparties to submit any crypto or fiat as margin collateral for CFD trading.
Wintermute Offers Liquidity for Crypto ETFs
Wintermute announced in May that it supports the newly launched Hong Kong spot Bitcoin and Ethereum exchange-traded funds (ETFs) by providing liquidity.
The market maker supplies liquidity to two Hong Kong-licensed digital asset platforms—OSL Digital Securities and HashKey HK Exchange.
During a challenging year for crypto exchanges, Wintermute reported an astounding 400% increase in over-the-counter (OTC) trading volumes for 2023 earlier this year. Wintermute reported that its OTC trading volume has increased fourfold despite the market downturn.