Cryptocurrency financial services firm Amber Group added a custom options contract service to its cryptocurrency asset investment application Amber App.
According to an announcement shared with Modern Consensus on Jan. 6, Amber App now includes a new yield-enhancement product called “Yield Boost” that lets users customize options contracts, which will be bought by the company. More precisely, customers can choose a linked price and set a maturity date on their investment contract.
“With an increasing number of new investors entering the scene, we see a surge in appetite for additional yield opportunities in the crypto markets,” said the firm’s CEO, Michael Wu. “Users of the Amber App can experience a safer gateway into crypto finance by utilizing the Yield Boost feature to enhance their yield by monetizing their market view and risk tolerance.”
Amber App users can leverage the Yield Boost feature employing bitcoin (BTC), ether (ETH), and United States dollar-backed stablecoins, with a minimum of $100 or 0.01 BTC, and up to 50 BTC. The settlement is in-kind if the market price is lower than the linked price at maturity or in dollars if it is not.
The Amber Group acts as the option buyer in those arrangements and thus pays the premium to users, but also has the right to exercise the option upon maturity. The firm claims that it has more than 200 institutional customers and has traded over $230 billion worth of crypto products.
As Bitcoin sees a new historic bull run which recently took its price to a new all-time high of above $35,000, financial firms are competing to catch all the liquidity that investors are willing to pour in this new asset class.
As Modern Consensus reported yesterday, cryptocurrency index fund provider Bitwise Asset Management recently crossed $500 million in assets under management after registering a fivefold increase in just a couple of months.
Investment management firm VanEck, on the other hand, recently filed with the U.S. Securities and Exchange Commission to launch a Bitcoin exchange-traded fund, or ETF. This would be the first-ever product of this kind to hit the market, if approved.