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Swissquote Bank is to release bitcoin exchange trade

An online banking service, Swissquote Bank has declared bitcoin exchanges traded certificate. Thus, it attempts to curb volatility of cryptocurrency.

The Switzerland’s online trading names are offering the first actively managed bitcoin certificate. Since Funds will be shifted between the digital currency and cash based on an algorithm. Hence, the trading will place on the SIXSwiss Exchange.

Swissquote said in a statement,

“Our strategy is focuses on reducing volatility by increasing the amount of cash held during periods of uncertainty and downturns. This lower-volatility strategy is intended to decrease volatility to help create more consistent potential returns in the long run”.

Also Read: Switzerland pulls off ‘fake’ E-Coin in latest cryptocurrency crackdown

Further, bank explains that it holds the cryptocurrency and dollars in a range from 0% to 40% of certificates portfolio. Therefore, limits exposure to bitcoin and cash is minus a 1.5% management fee and trading costs.

According to a Bloomberg report,  head of a market strategy at the bank, Peter Rosenstreich, said,

“Investors are wondering about the cryptocurrency but are unnerving by its volatility. So, we tried to build a trading algorithm that’s a protection against downside risks”.

Remarkably, the new certificate is not the initial incursion into the cryptocurrency space.

Previously, in July the new bitcoin trading feature has been declaring Swissquote with Bitstamp. Therefore, it allows customers to exchange bitcoin with US dollars and euros via their accounts.

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Sara K

Sara is steadily working on cryptocurrency evaluations, news, and fluctuations in digital currency prices. She is guest author associated with many cryptocurrencies admin and contributes as an active guide to readers about recent updates on virtual currencies.

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