Pan-European trading venue Spectrum Markets, today revealed its product offering has expanded and now it includes cryptocurrencies as an underlying, with turbo warrants on Bitcoin and Ethereum available.
The new additions expand Spectrum’s existing suite of Turbo24s. The new products allow brokers to offer their clients long or short leveraged exposure to the price of the two most popular cryptos
The financial institution is now the first to be able to offer European retail investor clients the opportunity to trade turbo warrants on crypto, on-venue, 24 hours a day, five days a week.
Retail investors are able to trade overnight, which is particularly relevant for them in this asset class as they can reduce the gap risk presented by the 24-hour nature of crypto, while trading on a regulated venue offers greater transparency and investor protection compared to many alternatives.
Additionally, investors don’t need to maintain a separate crypto wallet while using derivatives to access cryptocurrencies and thus can enjoy greater assurances over the safer custody of their assets.
Nicky Maan, CEO of Spectrum Markets, said:
We are proud to continue our track record of innovating to provide a better way for Europe’s retail investors, and this launch responds to very strong demand for versatile exposure to cryptocurrencies.
He added:
As well as being an easy way to access cryptocurrencies via their broker with a limited outlay, the Turbo24 products provide investors with tools to hedge exposure and better control their risk in what is, after all, a highly volatile asset class. We firmly believe there will continue to be a role for digital assets in retail investor portfolios, and we look forward to introducing further innovations and opportunities in this space.
Turbo warrants have an inherent knock-out function through which the instrument is automatically terminated when the underlying asset hits a specific price. This functionality allows investors to effectively limit their exposure, while Spectrum’s 24-hour trading reduces gap risk, where investors lose out if asset prices change significantly while other venues are closed.
Investors are also able to take short positions and benefit from declining prices. It also gives them a valuable means of hedging long exposure as part of a wider trading strategy.
