On Oct 23rd, 2020, BitOffer officially launched BitOffer Quantitative Fund, the first cryptocurrency fund that guarantees the original investment and interest. On the occasion, investors can purchase it with 0 fees. BitOffer Quantitative Fund named “DEF №1” was launched by BitOffer and Goldman Sachs Asian Team, which uses strategies such as Quantitative Hedge, Quantitative Arbitrage, High-frequency Trading, etc. To enable the annualized return to reach 20%, a number is much better than the other same types of products.

As the economy developed and improved, the value of people’s assets enhances. Thus, the demand for finance also becomes stronger. However, the annualized yield of the financial products on the Bank and Finance Institution was too low to satisfy it.

In addition, in the cryptocurrency industry, the total users trading futures and participating in yield farming but losing money reached a new peak in 2020. Therefore, a financial product that can guarantee the original investment and interest which is high enough but still stable becomes the demand for traditional finance and the cryptocurrency yield. BitOffer Quantitative Fund meets all the requirements: it not only guarantees investors’ original investment and gives high interest, but also covers the disadvantages from futures and another leveraged trading. In summary, it perfects the cryptocurrency ecosystem.

According to the announcement made by BitOffer Official, the period of the quantitative fund is 64 days, the total limit is 5 million USDT and the min. Investment is 100 USDT. It does not set any personal limit until the total limit is purchased.
The purchase will be divided into 3 parts:

The First Period: 00:00 Oct 23rd to 24:00 Oct 29th (UTC+8)
During the first period, the purchase charges 0 fees. Since the quantitative team is setting the quantitative strategies, redemption is not available until the second period: 00:00 Oct 30th to 24:00 Dec 20th. In the second period, purchase and redemption are available anytime.

The Second Period: 00:00 Oct 30th to 24:00 Dec 20th (UTC+8)
During the second period, investors can purchase or redeem the fund anytime as they like, but it charges fees: Purchase for 0.5%, Redemption for 3.5%. When the investors complete the purchase, they can also trade it on the secondary market. Trading on the secondary market will only charge the fees which are the same as the spot trading: 0.05%. In this way, investors can save the redemption fees.

The Third Period: 00:00 Dec 21st to 24:00 Dec 26th (UTC+8)
In the last week of the fund period, purchase and redemption are not allowed. Investors can check the real-time net value of the fund. it may fluctuate, but don’t worry, when the fund settles, the net value will definitely make investors’ annualized return reach 20%. Just like what we said, BitOffer Quantitative Fund guarantees investors’ original investment while getting investors to earn a fixed income.

FAQ:
1. How Do I Purchase Quantitative Fund?
Log in on https://www.bitoffer.com or BitOffer App, Click “Quantitative Fund”, then choose “Purchase” and input the purchase amount. Notice that the purchase of the BitOffer Quantitative Fund is divided into 3 parts, in a different period, the conditions and fees to redeem are a little bit different. For example, if you purchase from 00:00 Oct 23rd to 24:00 Oct 29th, it would never charge you fees. So, purchase in this period is the most cost-effective.

2. How Do I redeem Quantitative Fund?
During the second period which is from 00:00 Oct 30th to 24:00 Dec 20th, investors can redeem Quantitative Fund anytime: Log in on https://www.bitoffer.com or BitOffer App, Click “Quantitative Fund”, then choose “Redeem” and input the redemption amount, and it will charge 3.5% as fees. Thus, investors can trade LP/USDT to sell their shares on the secondary market so that the redemption fees can be reduced. Or investors can wait for the fund settles, in this way, the fees can be saved.

3. Comparing with other financial products:
A. Fixed Term Financial Products: 2.5% (Not Capital Guaranteed)
B. Other Quantitative Funds on BiXin, Cobo: 5% (Floating Return and Not Capital Guaranteed)
C. BitOffer Quantitative Fund: 20% Fixed Annualized Income (Capital & Interest Guaranteed)

It is obvious that the APY of the BitOffer Quantitative Fund is much better than the other same types of products on the yield of Traditional Finance and the Cryptocurrency. Moreover, most other products only give floating returns back, but when things come to BitOffer Quantitative Fund, the interest and original investment can be both guaranteed. Thus, no matter when you purchase or redeem it, you will never lose.

For example, if you purchase 10,000 USDT on BitOffer Quantitative Fund, and the initial net value is 100 USDT, so you would have 100 shares.
Here is the profit calculation: Profits = Holding Shares * (The value when settles — the initial value).
Then, in 64 days, if you choose to cash out, then you would earn 100 * (103.5–100) = 350 USDT.

Lately, SushiSwap tried to grab the liquidity on Uniswap by launching $SUSHI, their governance tokens. After then, Uniswap decided to issue their own governance tokens $UNI, and remade the incentive mechanism of their liquidity pool: Liquidity Provider (LP) can not only get commissions from the fees but also receive $UNI as rewards. In this way, some lost LP came back.

According to the data on defipulse.com, until now, the total value locked (USD) on the Ethereum DeFi protocol reached $9.56B. Uniswap ranked at the first place with $1.91B TVL. The time while being grabbed some liquidity by Sushiswap, the position of Uniswap fell to the 10th. However, after $UNI launched, Uniswap was back to the top of the ranking. In addition, $UNI Options was also listed on BitOffer Options.

As we all know, Uniswap is a protocol based on Ethereum, it aims to provide an automatically tokens exchange between ETH and ERC20s under “Automatic Market Makers” (AMM). The whole process of Uniswap is on chain, which means anyone who has a decentralized wallet can be accessed to the protocol.

Options trading to the cryptocurrency market is a development and perfection since it can be used as the hedging tool for spot trading and futures trading. When the market changes sharply, investors can even invest in it to bet for leveraged profits like $10 budget for hundreds bucks or even thousands. Comparing with futures trading, it does not require any margin, which means that liquidation will never happen. Since then, after Options trading started being launched in the cryptocurrency industry, it is highly embraced by investors.

Cryptocurrency Options now only occupies 1% of the cryptocurrency trading. The developing space in the future for Options trading is still huge. Thus, many whales hold the view that options trading will be the next cryptocurrency trading that tends to attract trillions cash. Therefore, after $UNI, the governance token on Uniswap, launched, $UNI was listed on BitOffer Options.

On Sep 21st, $UNI was listed on BitOffer Options, the most innovative and renowned Options trading provider in the world. At the day $UNI Options launched, the daily volume reached over $100 million. Many investors commented that “The volatility of $UNI is much higher than that of ETH, BTC, and LINK, so the profit space is much more considerable. What is more, as the options trading on BitOffer is American Options. It charges 0 fees, 0 margins with the features of ‘No liquidation, Non-exercise, being available to close order anytime’. And the 7/24 community service plus their excellent App experience make $UNI trading just gorgeous.”.

Based on the survey on BitOffer, users of $UNI options can be divided into 2 parts: 1. Only Buying $UNI options; 2. Using it as the hedging tool for $UNI perpetual swap. The second part took up 40% of the total volume. It seems that many investors still have no idea about the hedging strategy that using options trading against the risk comes with futures trading.

For example, now the $UNI price is $5:
· Open 5x long $UNI with $150;
· At the same time, you can buy 200 $UNI 4-hours put options contracts (the budget of this part is $30).

The first situation is that when $UNI pumps by $1 (20%):
· Your 5x long $UNI will double your assets, which means that you will earn $150.
· Your put options positions will cause you to lose $30 (the budget you used to buy $UNI Options).
· Your net profit will be $150-$30=$120.

The second situation is that when $UNI dumps by $1 (-20%):
· Your 5x long $UNI positions will be liquidated, which means that you will lose $150.
· Your 200 put options contracts will earn $200 as pay off.
· Then your net profit will be $200-$150-$30=$20.

After the calculation above, we can easily see that if we hedge $UNI perpetual swap with $UNI Options, then whether $UNI ups or downs, even our perpetual swap positions are gotten to liquidation, we can still earn profits from the $UNI market. That is how the hedge works.

Please notice that as for now, only BitOffer listed $UNI Options, and it charges 0 fees and 0 margins. In addition, $UNI options on BitOffer support the timeframes in 2-mins, 5-mins, 10-mins, 15-mins, 30-mins, 1-hour, 4-hours, 8-hours, 12-hours, 1-day, 7-day.

Since bitcoin production was reduced in May, the bull market did not appear as expected. After repeated failures of reaching $10,000, the balance of bitcoin exchanges has hit new lows in succession. Data on June 7 shows that the bitcoin exchanges on the entire network are 2310466.6, which is 300,000 bitcoins less than the high point at the beginning of the year. This shows that in the unclear market, more and more holders choose to trade for profit, rather than cash out.

Compared with the continuous decrease of Bitcoin spot circulation, the trading volume of Bitcoin options has shown explosive growth. According to statistics, the position of bitcoin options exceeded $1 billion for the first time on May 8, and this figure exceeded $1.5 billion at the end of May. BitOffer, one of the world’s largest digital currency derivatives trading platform indicate that since BitOffer launched the industry’s first Bitcoin option contract last October, its option trading users has exceeded 130,000, and the average daily trading volume has achieved 500% growth.

According to Lucian, the chief analyst at BitOffer, traders focus on digital currency options investment while the current halving has not started and there is no clear direction in the market, is because those options have the advantages of high leverage, no risk of exploding positions and low fees.

At present, the main participants in options trading are miners, institutional hedging traders, and individual traders. For miners and institutional traders, options as a hedging and hedging tool that have a lower risk cost than futures. For individual traders, options are more like a futures contract that will not be liquidated. The leverage of Option can be up to a thousand times, and not the margin trading system. Thus, there is no risk of liquidation and the trading cost is also lower than the futures margin, which is an excellent tool that throws out a minnow to catch a whale.

BitOffer is the first one to launch the digital currency options, and currently also the largest exchange for digital currency derivatives. The reason why it can stand out from many competitors, Lucian said this is because BitOffer’s bitcoin options following the American option trading rules, with 0 handling fees and 0 margins, but also can be closed at any time during the holding period, the transaction is flexible and free. In the current market, the options products of OKEX and Deribit are European options. Which in addition to paying the option fee, also needs to pay an additional transaction fee, and the option cannot be closed without expiration. It is not suitable for short-term flexible transactions.

Lucian said that the current market lacks largely continuous fluctuations, and the market comes and goes quickly. The flexibility of trading is particularly important. For example, on June 2, Bitcoin fell by nearly 800 points in 5 minutes. If it is a BitOffer buy a put option, closing at the low position immediately could make $800. However, for European options on other exchanges, even if they are in the right direction and at a low point, the option cannot close the position until the time is up, and we can only watch the market rebound back and the profits are running out.

Lucian believes that under the halving of the market, investors will prefer to choose the suitable investment tools to fill the vacancies in the transaction, which will grow the trading volume of options. BitOffer, as the industry’s first exchange to launch bitcoin options, currently also lists Ethereum options, which can be going-long and going-short. The trading cycle is flexible from 2 minutes to 7 days with 0 margin and 0 handling fees. Also, available to close the position, helping investors to pave the golden track before the bull market.

Datas showed that the trading volume of BitOffer Bitcoin call options surged. A chart of BitOffer Options holding positions provided by Lucian, the chief analyst on BitOffer, indicates that since May 13th, the holding positions of call options contract on BitOffer has continued surging. And recently, it has reached a peak of 1.5 billion USD in 2020, while the put options contract holding only had a tiny increase.

From the data above, we can see that after the bitcoins 3rd halving on May 12th, the bullish expectation of the market to the Bitcoin market kept being positive. Even after the halving, the market hovered around the $10,000 mark, the bullish expectation is still held by the investors. As Lucian analyzed, although the market remained sideways, an uptrend is still ongoing on the daily chart, and the weekly candlesticks continued increasing with a low volume, which means most of the capitals still held the Bitcoins.
https://miro.medium.com/max/1400/1*7my8SfsSyGzutthsb-p0sw.png
Checking Bitcoin Fear & Greed Index, the index has been back above 50. After the plunge on March 12th, the market cannot stop longing bitcoins. As the longs now takes the lead, the market tends to be bullish again.

While the options trading volume increased, the performance of futures seems normal. According to the market data, the holding positions of Bitcoin Futures is 4 billion USD, grew by less than 10%. However, the latest data shows that the BitOffer Options holding positions reaches 1.5 billion USD, grew by 500%. It is obvious that the Bitcoin Options chased Bitcoin futures in a close gap. The year 2020 is the year for options trading on the Bitcoin market. The options trading is about to explode in the next 3 years.

Here is a simple comparison between Bitcoin Options and Bitcoin Futures:
https://miro.medium.com/max/1400/1*iux25VqXpdxaiSXow-2RYw.png
For example:
While the Bitcoin market plunged on June 2nd, the liquidation of the futures trading reach 100 million USD, but the options trading enabled investors to earn 160 times profits.
When the market dropped by $800 in 5 mins, the change was -8%.
If you bought a 5-mins put options on BitOffer,
Then you would earn $800, compared with the $5 premium that you used to buy the options contract, the profit ratio reached 160%.
What if you short Bitcoins 100X?
The profit ratio would only be 8 times.
After realizing the disadvantage of the futures trading compared with Bitcoin Options, more and more cryptocurrency exchanges started entering the options market. BitOffer, as the first one launch Bitcoin Options, also the platform owns the highest options trading volume, now the active users reached a number near 130,000. BitOffer Options supports investors to choose the options tenor from 2-mins to 7-days. Moreover, it also enables investors to close the options contract before the expiry date. Now, Ethereum (ETH) options also has been launched on BitOffer.com.
BitOffer, a Better Offer.

June 2nd is an unforgettable day for many investors. Bitcoin once highest rose to $10299 and then callback to the 10100 range. After 12-hour sideways, it fell sharply and slammed nearly 800 points in 5 minutes, then was finally supported at 9300. The price returned to 9400 again and restarted a small consolidation.

The huge volatility did not make everyone laugh to the end, some people doubled their profits while insomnia and others suffering the burst. According to statistics, within 24 hours of the current round of the Bitcoin roller coaster, the entire network’s liquidation amount reached 685 million dollars, which is the record high of nearly 1 month.

According to the participant from doubling to liquidation, he held a bullish contract when Bitcoin reached about 10,000. At that time, he felt that it would definitely rise again after breaking 10,000. Even if the price fell, he did not think of closing the position, so he was moderately excited After 12 hours of consolidation, however, he didn’t expect to drop 800 points in 5 minutes without having time to close it.

Lucian, the chief analyst of BitOffer Exchange, believes that many ordinary investors, like the participant, often have no time to react when facing such an extreme market condition. Thus, the best risk control is to prevent future problems.

So the question is, if it is us, how to properly use the leverage when facing such a situation to avoid the liquidation?

Lucian believes that in addition to simply reducing leverage, you can also choose investment tools with smaller risk attributes, such as BitOffer’s bitcoin options. BitOffer’s bitcoin options are a type of investment with 0 margin and 0 handling fees and come with a thousand times leverage. Because options are not margin trading, even if the leverage is as high as a thousand times, there will be no liquidation in extreme markets.

The bitcoin option developed by the BitOffer exchange which is a kind of American option. Buying this option is equivalent to buying a right. For example, suppose we spend $5 to buy 1 bitcoin in 5-min option, when the bitcoin crash on June 2, we can get the benefits of shorting 1 bitcoin for 5 minutes. At that time, when bitcoin fell by $800 in 5 minutes, we made $800. The cost of $5 corresponds to the income of $800, which is 160 times!

Although this is an ideal assumption for extreme market conditions, from the perspective of reducing risk, if bitcoin rose by $800 at the time, we would only bear the cost of options of $5, rather than a loss of $800, because we bought “Rights to get the profit”, there is no need to undertake risk obligations, and truly realize “limited risks and unlimited returns.”

As one of the world’s largest trading platforms for digital currency option derivatives, BitOffer Exchange provides investors with a complete range of Bitcoin and Ethereum options, which can be long and short, with a flexible choice of from 2 minutes to 7 days. It is easier to balance opportunities and risks and deal with huge fluctuations easily.

According to Glassnode data, the number of bitcoins held by cryptocurrency exchange wallets has reached a new low in 18 months. This Monday, the number of Bitcoins holding was only slightly higher than 2.3 million, which has decreased by 11% this year. In the same period, the number of Ethereum has increased by more than 7%. There is a market view that investors are more willing to hold bitcoin and turn to trading other currencies. Lucian, chief analyst of BitOffer Exchange, claimed that: “People are accumulating (BTC), and market participants now seem to have a longer time preference and this trend will continue. “

As Lucian’s point of view, there are indeed some strong holders of bitcoin in the market. No matter how the market fluctuates, it will not affect their long-term views. Most of those investors are early bitcoin traders who have benefited a lot from the last decade. The low point of market movement is their opportunity to take the position, and they firmly hold the currency in the shock range. This is also the main reason for the recent decline in bitcoin trading volume on the exchange. The data shows that about 60% of the newly mined bitcoins in the past 12 months have maintained their positions. This phenomenon has also appeared in the previous bull market.

Whether the Grayscale fund continued to hold the currency or the exchange’s bitcoin holdings have reached a new low, they are all conveying the strong confidence of the long-term funds. The recent market conditions have also increased. In the market on May 27, bitcoin performed strong which breaking through both 4-hour and 1-hour 20 days moving averages and the highest reached 9230 US dollars in the day and finally closed at 9203.67. Bitcoin then reached a maximum of 9280 US dollars on May 28th. Although it has dropped slightly, it still stays in the 4-hour ascending channel.

As ordinary investors, most people will not hold the currency for a long time, but when facing the market that may start at any time. If investors do not arrange in advance, they may watch the bull market went far. So how can we minimize the risk of loss while seizing the opportunity?

Perhaps we can use some powerful products for hedging such as the bitcoin options tool launched by the BitOffer exchange.
what is bitcoin options?

Options are essentially kind of rights that enables the holder to buy or sells an asset at a fixed price at a specific date (or before the date). Just like the futures trading is a hedging tool for spot trading, so is options trading.

For example, when you plan to buy a house, dealers always offer discounts when you pay a deposit first. After then, when the value of the house drops sharply, you can choose not to buy the house, and your largest loss is the deposit. On the contrary, if the value of the house increases, then you would earn the price spread as profits. This is how options works and the deposit is the premium of the Options trading.

How to hedge?

The hedging is simply to open long and short at the same time. Suppose I consider that Bitcoin will immediately rise to 10,000 US dollars, so I start with 1 BTC at 9000 US dollars. Unexpectedly, 1 hour later, BTC fell 8,000 US dollars. If it is not hedged, it has already lost $ 1,000. But out of prudence, when long BTC, I spent $ 20 to buy a 1-hour BTC short option. After 1 hour, because BTC fell $ 1,000, the short option is equivalent to short 1 bitcoin, so Reap a gain of $ 1,000. Then my income = spot-1000 + option 1000–20 = -20, which means that I spent 20 US dollars in option fees and resisted the volatility risk of 1000 US dollars. Finally, my investment has been hedged

Whether it is the eve of a bull market or a high level of adjustment, as a common investor, as long as you choose the derivatives which suit you, you can defend against most of the risks. Bitoffer is one of the most professional cryptocurrency financial derivatives trading platform which bases its headquarter in Singapore. As the global financial derivatives trading service provider, Bitoffer adheres to the concept of “Endowing users with the ability to trade a variety of digital assets on a secure, efficient platform”. The requirement of Options trading at Bitoffer is much simpler with the truth that it request 0 margin, 0 fee, with as higher 1000X leverage, and does not have the liquidation mechanism. All of Bitoffer users have the opportunity to get a thousand times abnormal returns no matter the market is bull or bear, and the options trading can also be used as a hedging method to resist extreme market risks

“Grayscale is buying about 2/3 of all new Bitcoin's supply, according to the research performed by a Reddit user aka parakite. The data shows that the Grayscale Bitcoin Trust increased by over 60,000 BTC from February 7 to May 17, which means that those coins will be locked for at least six months.

Those findings are confirmed by another cryptocurrency expert Kevin Rooke, who explained that Grayscale Bitcoin Trust invested nearly 30 billion in Bitcoin per week in Q1 2020, which is ten times more than a year ago. This development may indicate increased institutional interest in Bitcoin as Grayscale Trusts allow them to gain risk-free exposure to digital assets like Bitcoin and Ethereum. “（Tanya Abrosimova，2020）

The news above I quoted is that Grayscale Bitcoin Trust increased its Bitcoins holding positions by 60,000 BTC which is equal to 2/3 of all new Bitcoin’s supply. It has no doubt that it became another cardiotonic to the Bull market since the Bitcoin price hovered recently. Then, most investors may have questions: What is Grayscale Bitcoin Trust, How does it influence the market, etc.

What is Grayscale Bitcoin Trust?

Grayscale Bitcoin Trust (GBTC) is an investment vehicle. GBTC enables investors to gain access and exposure to the price movement of bitcoin in the form of a traditional security without buying, storing and safekeeping bitcoin directly. GBTC’s purpose is to hold bitcoins, which are digital assets that are created and transmitted through the operations of the peer-to-peer bitcoin network, a decentralized network of computers that operates on cryptographic protocols. The investment objective of GBTC is for the shares (based on bitcoin per share) to reflect the value of the bitcoins held by GBTC, determined by reference to the bitcoin index price, less the GBTC’s expenses and other liabilities. The activities of GBTC include issuing baskets in exchange for bitcoins transferred to the GBTC as consideration in connection with the creations.

How Does It Influence the Market?

1.   Continuous Purchasing on the Bitcoin Market
From the fund units, Grayscale Bitcoin Trust has already held more than 30 billion Bitcoins. Furthermore, they almost kept investing 2,000 bitcoins every day recently. Even compared with the daily liquidity of the Bitcoin market, daily investing 2,000 Bitcoins seems to be insignificant at all, but if the capitals continue buying-in Bitcoins in this way in the future, the strength of the net purchase will structure a positive uptrend on the Bitcoin market, which will do a remarkable benefit to the bull comes out.

2.   The Overall Market Expectations are Still Bullish.
Traditional finance institutions increased their Bitcoin quotas of their portfolio: As what Grayscale announced is that 80% of their clients are from traditional finance institutions. Plus the news we mentioned at first, gave out a fact that the traditional finance institutions started increasing their Bitcoins quotas of their portfolio by keeping purchasing GBTC, which caused Grayscale to buy almost 2/3 of all new Bitcoin’s supply recently.

Then, why are institutions willing to pay a 20% to 40% premium to buy GBTC?

1.   After purchasing GBTC, the book value of the Bitcoins will immediately increase by 20% to 40%.
2.   The Bitcoins they hold will directly become traditional financial assets, which means the Bitcoins they hold will be able to buy or sell in the traditional finance market.
3.   In this way, they are still holding a bullish attitude to the Bitcoin market. The lock period now has been reduced to 6 months. If the investors need to sell some Bitcoins after then, they could directly sell trust shares which are 20% to 40% higher than the Bitcoin price. Even the premium is gone by discount in the future, Genesis, the one true controller of the trust, can enable the redemption. Then, the trust shares can be exchanged into Bitcoins before cashing out.

Thus, to institutions, even purchasing GBTC now has a 20% to 40% premium, it is still a secure, stable, and profitable way to enhance their ROI. Theoretically, purchasing GBTC now should be defined as “arbitrage”, but since the tradable shares on the market are only value at less than 4,000 Bitcoins. At least in the next 6 months, it is still cardiotonic to call the bull to come out.

How Can Investors Who Cannot Purchase GBTC Now Enjoy Similar Advantages?

Since the requirement of purchasing GBTC is strict, how can investors who do not meet the requirements to enjoy similar advantages that GBTC brings?
BitOffer Bitcoin ETF should have been the only answer now you can find in the market.

Bitcoin ETF launched by BitOffer is an investment of special asset management that can track the Bitcoin price index. Its biggest benefit to investors is that it can enable investors to hold cryptocurrency more easily than buying one or even more tokens. BitOffer Bitcoin ETF now has already supported BTC3X(Open 3X long BTC), BTC3R(Open 3X short BTC), and BTCR(Open 1x short BTC), which means that BitOffer Bitcoin ETF allows investors to long or short as they desire, unlike GBTC, once the investors purchase it, they can only keep being the longs.

Furthermore, an automatically adjusting mechanism has been added into BitOffer Bitcoin ETF. With this innovative function, its payoff can reach 3X to 15X because its net value will be updated in real-time, so it is calculated by compounding.
Now purchasing Bitcoin ETF on BitOffer.com is still available. And the minimum purchase is only 10 USDT. Start purchasing Bitcoin ETF on BitOffer, earning 17 times profits no matter the market pumps or dumps.