The Managed Account Program (MAP) empowers investors to capture Crypto returns through the safety and convenience of exchange-traded futures and options.
CHICAGO (PRWEB) MARCH 16, 2020
DBL Digital, a division of DrawBridge Lending, a CPO and CTA with a market and credit based approach to digital asset investing and lending, announced the release of its Bitcoin Managed Account Program (MAP) for individual and institutional investors.
The Bitcoin MAP produces enhanced yield within a separately managed account utilizing long bitcoin futures with an option overlay. The program provides investors with exposure to the Crypto market in a risk-mitigated fashion, although virtual currency futures and options on futures present several risks related to the underlying virtual currency that should be considered prior to trading them (see the risk disclaimers below).
The program targets overlay returns at a specific upside call price and offers a hedge against bitcoin price declines. Tenors of 1 to 6 months are currently offered.
“Enhanced levels of volatility in Cryptocurrency markets have created exciting investment opportunities through traditional options strategies,” said Jason Urban, CEO of DBL Digital. “We’ve developed the Bitcoin MAP to give investors exposure to Crypto along with an opportunity to capture enhanced returns on the price of bitcoin.”
The Bitcoin MAP will never have to meet a variation margin call. All positions in the program are cleared at CME Clearing or ICE US Clearing and the only cost to the investor is a performance fee. Bitcoin MAP investors retain ownership and price risk of the bitcoin futures, both up and down.
The firm also offers Accredited and Eligible Contract Participant (ECP) investors with additional opportunities through options hedging strategies to create yield on bitcoin held in a segregated wallet at a qualified custodian in cold storage.
All DBL Digital programs provide clients with a white glove service experience, operating within full risk mitigation and compliance.
To learn more about DrawBridge Lending’s full suite of investing and commercial lending offerings and to request details on the Bitcoin Managed Account Program (MAP), visit https://www.dbl.digital.
ABOUT DRAWBRIDGE LENDING
Headquartered in Chicago and operating as a CFTC regulated Commodity Trading Advisor (“CTA”) and Commodity Pool Operator (“CPO”), DrawBridge Lending initiates USD loans secured by digital assets on a blockchain maintained by third-party qualified and insured custodians, and offers investment products and advanced risk management strategies. DrawBridge Lending has an industry reputation for innovation and leadership through its executive team that brings over 125 years of experience in legal, lending, technology, brokerage and trading. For more information on DrawBridge Lending (DBL Digital) visit http://www.drawbridgelending.com.
Risk Disclosure: The risk of loss in trading commodity interests can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. In considering whether to trade or to authorize someone else to trade for you, you should be aware of the following: if you purchase a commodity option you may sustain a total loss of the premium and of all transaction costs. If you purchase or sell a commodity futures contract or sell a commodity option or engage in off-exchange foreign currency trading you may sustain a total loss of the initial margin funds or security deposit and any additional funds that you deposit with your broker to establish or maintain your position. If the market moves against your position, you may be called upon by your broker to deposit a substantial amount of additional margin funds, on short notice, in order to maintain your position. If you do not provide the requested funds within the prescribed time, your position may be liquidated at a loss, and you will be liable for any resulting deficit in your account. Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example, when the market makes a “limit move. ”The placement of contingent orders by you or your trading advisor, such as a “stop-loss” or “stop-limit” order, will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders. A “spread” position may not be less risky than a simple “long” or “short” position. The high degree of leverage that is often obtainable in commodity interest trading can work against you as well as for you. The use of leverage can lead to large losses as well as gains. In some cases, managed commodity accounts are subject to substantial charges for management and advisory fees. It may be necessary for those accounts that are subject to these charges to make substantial trading profits to avoid depletion or exhaustion of their assets. The disclosure document contains a complete description of each fee to be charged to your account by the commodity trading advisor. This brief statement cannot disclose all the risks and other significant aspects of the commodity interest markets. You should therefore carefully study the disclosure document and commodity interest trading before you trade, including the description of the principal risk factors of this investment, in the disclosure document.
Virtual Currency Disclosure: DrawBridge Lending is a member of the national futures association (NFA) and is subject to NFA’S regulatory oversight and examinations. DrawBridge Lending has engaged or may engage in underlying or spot virtual currency transactions in its commodity pool. Although NFA has jurisdiction over DrawBridge Lending and its commodity pool, you should be aware that NFA does not have regulatory oversight authority for underlying or spot market virtual currency products or transactions or virtual currency exchanges, custodians or markets. You should also be aware that given certain material characteristics of these products, including lack of a centralized pricing source and the opaque nature of the virtual currency market, there currently is no sound or acceptable practice for NFA to adequately verify the ownership and control of a virtual currency or the valuation attributed to a virtual currency by DrawBridge Lending. One or more jurisdictions may, in the future, adopt laws, regulations or directives that affect virtual currency networks and their users. Such laws, regulations or directives may impact the price of virtual currencies and their acceptance by users, merchants and service providers. The relatively new and rapidly evolving technology underlying virtual currencies introduces unique risks. For example, a unique private key is required to access, use or transfer a virtual currency on a blockchain or distributed ledger. The loss, theft or destruction of a private key may result in an irreversible loss. The ability to participate in forks could also have implications for investors. For example, a market participant holding a virtual currency position through a virtual currency exchange may be adversely impacted if the exchange does not allow its customers to participate in a fork that creates a new product. Many virtual currencies allow market participants to offer miners (i.e. Parties that process transactions and record them on a blockchain or distributed ledger) a fee. While not mandatory, a fee is generally necessary to ensure that a transaction is promptly recorded on a blockchain or distributed ledger. The amounts of these fees are subject to market forces and it is possible that the fees could increase substantially during a period of stress. In addition, virtual currency exchanges, wallet providers and other custodians may charge high fees relative to custodians in many other financial markets.