OrBit Markets Executes World?s First Bitcoin and Gold Hybrid Derivative

BY Business Wire | ECONOMIC | 05/08/23 06:01 AM EDT

First-of-its-kind innovative product allows institutional investors to combine gold and bitcoin market views in a single structure.

SINGAPORE--(BUSINESS WIRE)-- Over the past few months, Bitcoin and Gold have both witnessed noteworthy surges as investors have bet on the Federal Reserve slowing down the pace of interest rate hikes. The recent instability in the banking system has also further driven up the prices of these assets, leading some market observers to conclude that Bitcoin may in fact live up to its ?digital gold? promise and compete with gold for the safe haven asset status. Investors anticipating a sustained rally in both these assets are now able to generate enhanced returns by combining both exposures in a single product.

Orbit Markets, the leading institutional liquidity provider in digital asset options, executed the trade with PI Digital, a regulated best-execution broker for high net worth individuals and institutional clients based in Switzerland. Antonio Pellizato, founding partner at PI Digital, commented ?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?.

The derivative product references XAUT, the gold-backed token issued by Tether and allows investors to earn up to 40% APR. At maturity, the product will be settled in either USDT, XAUT or BTC as designated by OrBit. Hybrid products are common in traditional finance, for example those that combine equity and commodities assets. ?OrBit aims to offer flexible solutions to our counterparties. This trade showcases our ability to remain at the forefront of innovation in digital asset risk management? said Pulkit Goyal, VP of Trading at OrBit Markets. OrBit plans to launch further hybrid products dedicated to institutional investors.

About OrBit Markets:

OrBit Markets is the leading institutional liquidity provider of digital asset options and structured derivatives. Founded by a team of former executives in finance and technology, OrBit combines its expert know-how in financial derivatives with the latest blockchain technology. With a mission to develop innovative investment and hedging solutions for digital assets, OrBit Markets offers a wide range of products, including vanilla options, exotic options, and structured derivatives across major and alternative cryptocurrencies. Its services encompass structuring, trading, and market making. For more information, visit orbitmarkets.io

Source: OrBit Markets

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.