In a collaborative effort, Orbit Markets, a prominent institutional crypto options liquidity provider, is set to launch a derivative product focused on the hybridization of Bitcoin and gold, a first of its kind.
This unique offering, developed in conjunction with execution broker PI Digital, aims to capitalize on the recent surges witnessed in both Bitcoin and gold markets.
Investors have been increasingly optimistic about Bitcoin and gold, driven by their anticipation of the Federal Reserve’s gradual reduction in the pace of interest rate hikes.
Furthermore, the instability observed in the banking sector has further fueled the value of these assets.
Consequently, some experts in the market now speculate that Bitcoin may fulfill its potential as a “digital gold,” thus competing with the traditional safe-haven asset.
This innovative initiative caters to investors who foresee a sustained upward trajectory for both Bitcoin and gold, enabling them to maximize their returns by consolidating their exposure to these assets within a single instrument.
This endeavor represents one of the latest endeavors within the cryptocurrency sector, as businesses strive to generate consistent profits amid episodes of macroeconomic turbulence.
By combining the enduring value of gold with the promising prospects of digital assets, this offering seeks to provide investors with a diversified opportunity to safeguard their investments.
“We strive to offer high-end bespoke services to our clients, always balancing performance and risk management in the most efficient ways. This hybrid asset product is a perfect fit for investors that have experience in traditional assets such as gold and are now starting to dip their toes into digital assets,” OrBit Markets said.
Tether’s derivative offering, XAUT, is a token backed by gold. Upon maturity, the product can be redeemed in USDT, XAUT, or bitcoin, as decided by OrBit. The Singapore-based company states that hybrid financial instruments, combining equities and commodities, are commonly used in traditional finance.
In March, MEV Capital, an asset management firm specializing in decentralized finance (DeFi), employed options contracts issued by OrBit markets. This strategic move helped hedge the positions of liquidity providers and prevented losses in Uniswap (v3) liquidity pools.
