Institutions are increasingly using the BTC options playbook in altcoins: STS Digital

STS Digital reports that institutional clients, including token projects, foundations, and asset managers, are increasingly applying options strategies historically used for Bitcoin to alternative cryptocurrencies (altcoins). These strategies, such as covered calls, put selling for yield, and call buying for upside participation, are being used to manage price volatility and enhance returns, especially following the forced liquidations seen during the October 10 crash. Maxime Seiler, CEO of STS Digital, noted that options provide a more robust way to express risk in volatile markets, helping investors avoid risks like auto-deleveraging (ADL). STS Digital, which specializes in digital asset derivatives across over 400 cryptocurrencies, facilitates these bilateral trades, catering to rising demand for altcoin options beyond what centralized platforms typically offer for major tokens.

(Source：CoinDesk)