Swissquote Bank, an on-line banking service, has launched a bitcoin exchange-traded certificate that it claims will curb the cryptocurrency’s volatility.
The Bitcoin Active Certificate performs by moving investor’s holdings in between bitcoin and U.S. dollars with the support of a machine learning algorithm that forecasts quick-term market place movements using technical indicators, buy/sell stress and evaluation of social media sentiment.
Swissquote stated in a statement: “Our strategy is focused on minimizing volatility by rising the quantity of money held in the course of periods of uncertainty and downturns. This reduced-volatility method is intended to lower volatility to support develop far more consistent possible returns in the long run.”
The bank explained it will hold from 60–100 percent of the portfolio in bitcoin, depending on the level of self-confidence its bitcoin price prediction, although the remainder is held in U.S. dollars. Trading will be carried on the SIX Swiss Exchange, it added.
According to a Bloomberg report, Peter Rosenstreich, head of industry technique at the bank, mentioned:
“Investors are excited about the cryptocurrency but are unnerved by its volatility. So we attempted to develop a trading algorithm that is a protection against downside dangers.”
Notably, the new certificate is not the bank’s very first foray into the cryptocurrency space.
Back in July, Swissquote announced a new bitcoin trading function in partnership with digital currency exchange Bitstamp. The service makes it possible for customers to exchange bitcoin with euros and U.S. dollars through their accounts.
Trading screen image through Shutterstock
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Published at Fri, 24 Nov 2017 15:00:11 +0000