Crypto Trading Firm Wintermute Adds CFDs to oneZero Network

Last updated:

July 17, 2024, 02:18 EDT
| 1 min read

Crypto derivatives trading firm Wintermute Asia has added spot and CFD product access to oneZero network.

Wintermute Asia said the CFDs are a new addition to Wintermute’s OTC derivatives products and were first launched back in March. Trading volumes have seen notable growth, increasing over threefold by June, said the market maker.

CFDs are a type of derivative product. CFD stands for ‘contract for difference’, and can be used to speculate on the future direction of a market’s price.

The oneZero network is a trading technology network used by banks and financial institutions.

Crypto CFDs Hedge Risk

“This year’s market momentum and the consistent growth in crypto adoption are driving increased interest in crypto trading. This interest is partially fueled by the introduction of OTC-cleared derivatives such as crypto CFDs to enhance returns and hedge risk,” said Evgeny Gaevoy, CEO of Wintermute.

Some investors may choose to hedge risk by using CFDs to protect investments from market fluctuations. This involves taking an opposite position in a CFD to the one invested in, to partially mitigate a potential loss.

“We’ve seen a significant influx of traditional FX market participants banks and brokers entering the space, seeking top-tier liquidity providers,” said Gaevoy.

Wintermute said it has also introduced multi-currency collateral support, allowing counterparties to post any crypto or fiat as margin collateral for CFD trading.

Wintermute ProvideS Liquidity for Crypto ETFs

In May, Wintermute said it is providing liquidity and supporting the newly launched Hong Kong spot Bitcoin and Ethereum exchange-traded funds (ETFs).

The market maker provides liquidity to two Hong Kong licensed digital asset platforms; OSL Digital Securities and HashKey HK Exchange.

Earlier this year, Wintermute reported a staggering 400% increase in over-the-counter (OTC) trading volumes for the year 2023 in the midst of a challenging year for crypto exchanges. Wintermute said its OTC trading volume has surged by four times despite the market downturn.