BUY BITCOIN
LedgerX has announced today that it has launched a bitcoin savings account, perfect for those who want to buy and hodl their assets.
Attractive Option for Long-Term Bitcoin HODLers
The launch of the savings account by the cryptocurrency asset management platform is the first to be regulated by the U.S. Commodities Future Trading Commission (CFTC). According to a report from Forbes, the aim of the bitcoin savings account is to give investors a fiat-based yield on the bitcoin they’re holding.
Through the LedgerX Savings product investors use a technique known as a call overwrite. Through a simplified version, a user chooses the implied rate they want to earn with the new savings account and the number of bitcoins they are hoping to earn the yield on. They then submit this to the LedgerX matching engine that is powering their existing bitcoin options product.
At its most basic, the idea is to make it easier for investors to know when they can potentially make a premium on the sale of their asset. The LedgerX Savings account also comes with two CFTC licenses: a derivatives clearing organisation (DCO) license and a swap execution facility (SEF) license. According to Forbes, this ‘signals an increasing level of sophistication being offered to bitcoin users.’
Designed based on the use patterns of LedgerX’s existing customers the platform expects to see high volumes on the product. Similar to the way a normal savings account works, though, it may have more appeal to those who prefer to hodl their bitcoin rather than sell. The whole point, after all, is to earn interest off the digital currency that has been deposited into the accounts. So much so, that according to LedgerX, the savings interface will be ‘skewed to the long bitcoin holders.’
Yet, while the volatility of the cryptocurrency is what makes the product work, the unpredictability of the coin may not be an attractive option for everyone. According to CoinMarketCap, bitcoin is currently trading at $8,589, representing a 2.25 percent decline in the past 24 hours. Notably, though, this time last year bitcoin was trading at $1,724. Those are attractive gains for hodlers.
Featured image from Shutterstock.
