DBL Digital, a branch of Draw Bridge Lending, is unveiling its new Bitcoin Managed Account Program (MAP) for both inexperienced and professional traders.Draw Bridge Lending Looks to Bring Institutional Players OnboardDraw Bridge is a commodity trading advisory (CTA) firm that according to a press release, takes a “credit-based approach” to investing in digital currencies and tokens. All futures trading is done through a separate account of the client’s, who is only exposed to crypto trading depending on the amount of risk that’s involved. This is done to combat losses from both price swings and volatility.A hedge against declines in the BTC price is also offered to users. Jason Urban, the CEO of DBL Digital, explained in a statement:Enhanced levels of volatility in cryptocurrency markets
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DBL Digital, a branch of Draw Bridge Lending, is unveiling its new Bitcoin Managed Account Program (MAP) for both inexperienced and professional traders.
Draw Bridge Lending Looks to Bring Institutional Players Onboard
Draw Bridge is a commodity trading advisory (CTA) firm that according to a press release, takes a “credit-based approach” to investing in digital currencies and tokens. All futures trading is done through a separate account of the client’s, who is only exposed to crypto trading depending on the amount of risk that’s involved. This is done to combat losses from both price swings and volatility.
A hedge against declines in the BTC price is also offered to users. Jason Urban, the CEO of DBL Digital, explained in a statement:
Enhanced levels of volatility in cryptocurrency markets have created exciting investment opportunities through traditional options strategies. We’ve developed the bitcoin MAP to give investors exposure to crypto along with an opportunity to capture enhanced returns on the price of bitcoin.
The program could be a serious push towards mainstream territory for bitcoin and its crypto cousins given that many analysts and traders alike believe a lagging institutional presence is what’s preventing digital assets from attaining their due. In the past, many institutional players have shown a heavy reluctance to get involved in crypto trading given that they have shown a deep tendency to experience price drops at the most unexpected (and inopportune) moments.
At press time, for example, bitcoin – the world’s largest cryptocurrency by market cap – has lost more than half its value over the past month. Fear and panic are spreading due to the coronavirus that allegedly originated in Wuhan, China. This panic has potentially caused falls in stocks, oil and crypto alike. Bitcoin was trading for over $10,300 in February, but it has since dropped into the low $5,000 range.
That’s a lot of money down the drain for crypto holders, which explains why so many institutional players are hesitant to get involved. Draw Bridge and similar ventures are potentially looking to make it easier for both them and average traders alike.
Keeping Your Money Safe
The company also says that performance fees are the only fees required of clients, and that whatever futures a client purchases or invests in are fully owned by the client themselves. Products and funds are held in cold storage to prevent malicious actors from getting a hold of users’ money, and the company operates in full compliance with today’s confusing crypto trading guidelines.
Draw Bridge is situated in Chicago, Illinois, and offers USD-based loans to clients that are secured by digital currencies on the blockchain. These loans are typically maintained by third-party custodians, and all loans and products come equipped with insurance to ensure clients are not liable for any losses resulting from theft or technical glitches.