BlockFills Partners with CoinDesk Indices to Launch Options on the CoinDesk 20 Index
In a significant move for the digital asset trading landscape, BlockFills, a firm specializing in digital asset technology and trading, has announced its partnership with CoinDesk Indices. Together, they are set to introduce options linked to the CoinDesk 20 Index (CD20).
The CoinDesk 20 Index, which was launched just a year ago, serves as a benchmark for assessing the performance of major digital assets. This index has been designed to meet the growing institutional demand for a wider range of tradable products beyond just bitcoin (BTC) and ether (ETH).
With the introduction of options trading, market participants can now speculate not only on price movements but also on volatility and timing. This development is expected to enhance professional liquidity within the index, making it an attractive option for institutional traders.
Options are financial derivatives that provide the holder with the right, but not the obligation, to buy or sell the underlying asset at a predetermined price within a specified time frame. The current bullish trend in the cryptocurrency market, driven largely by the institutional adoption of bitcoin, has led many investors to explore options tied to BTC, as well as other crypto-related products, including innovative investment vehicles like spot ETFs.
Perry Parker, the head of options trading at BlockFills, commented, “As the digital assets market continues to mature, qualified institutional market participants are demanding a foundational reference index to trade, invest, and measure performance.”
Institutions have already begun engaging with BlockFills’s CD20 options, with notable participation from Hyperion Decimus, a digital asset manager and multi-strategy crypto fund, which executed the first transaction of this new product this month.
Chris Sullivan, Principal at Hyperion Decimus, expressed enthusiasm for the development, stating, “The BlockFills CoinDesk 20 index options market is a unique solution for professionals managing a portfolio within this asset class, and we are thrilled to kick off trading of the product.” He further noted, “HD seeks to utilize the derivative for both hedging and directional trades.”
