Swissquote Bank, a global leader in online banking, has released a bitcoin exchange-traded certificate which it reports will control the cryptocurrency’s unpredictability.
The Bitcoin Active Certificate functions by switching investor’s holdings in between bitcoin and U.S. dollars through the help of a device learning algorithm which predicts short-term market activities employing specialized indicators, buy/sell pressure as well as analysis of social networking opinion.
In a statement, Swissquote said:
“Our strategy is focused on reducing volatility by increasing the amount of cash held during periods of uncertainty and downturns. This lower-volatility strategy is intended to decrease volatility to help create more consistent potential returns in the long run.”
The bank revealed it would store from 60-100 % of the account in bitcoin, according to the degree of confidence its bitcoin cost prediction, while the rest is kept in U.S. dollars. Buying and selling would be done in the SIX Swiss Exchange.
Peter Rosenstreich, Swissquote Bank’s Head of Market Strategy said:
“Investors are excited about the cryptocurrency but are unnerved by its volatility. So we tried to build a trading algorithm that’s a protection against downside risks.”
More importantly, the new certificate is not the very first time for the bank to venture into the cryptocurrency market.
Last July, Swissquote introduced a brand new bitcoin trading feature together with the world’s foremost bitcoin exchange Bitstamp. The particular service makes it possible for clients to exchange bitcoin with U.S dollars and Euro using their own accounts.