Bitcoin derivatives in Japan’s Nomura amid high volatility

Sahana Kiran
Source – Unsplash

Bloody Bitcoin [BTC] didn’t seem to scare people off very easily. The market has been on a downtrend for weeks now. Despite this, cryptocurrencies are being extensively adopted. From prominent banks to investment firms, everyone has been diving into the crypto derivatives arena lately. Japan’s biggest brokerage, Nomura decided to embrace crypto by giving a green signal to crypto derivative contracts trading.

Nomura is reportedly offering over-the-counter crypto derivates along with Bitcoin non-deliverable forwards as well as options. Noting that the bank could offer BTC futures and options trading, the Rig Karkhanis, the bank’s head of global markets for Asia ex-Japan, further said,

“We also have the capability to offer bitcoin futures and options trading, with such trades executed this week on the CME with Cumberland DRW, marking the first digital asset trades for Nomura.”

Risky business with Bitcoin

The crypto carnage set off by the decline of LUNA and UST instigated the downfall of several coins. Following double-digit losses, several investors began panic selling further instigating chaos in the market. Amidst this havoc, several products and services surrounding Bitcoin took off without hesitation.

Just yesterday, Australia’s very first Bitcoin ETF, Ethereum ETF as well as Cosmos Purpose Bitcoin Access ETF made its debut. However, these weren’t received as expected considering the ongoing market sentiment.

But, during press time, the market finally witnessed the color green which came in like a breath of fresh air to the community. After days of dealing with a bloody market, the assets seemed to be eyeing recovery. Bitcoin, after plummeting down to $27k, was back to over $30k. While this volatility was concerning it came as a respite to many.

Additionally, addressing the volatile nature of the market, Nomura’s Karkhanis said,

“Options enable investors to trade volatility directly and protect against downside risks.”