The crypto-friendly institution SEBA Bank has announced the launch of a new bitcoin-based product that offers investors the opportunity to earn yield.
According to a tweet published on June 24, the new product, dubbed Dual Currency Certificate, is being targeted as an easy entrance into the crypto markets with an “attractive payout.” The post describes the Dual Currency Certificate as an “innovative way” for investors to benefit from the price volatility of bitcoin.
🚀Presenting an innovative way to benefit from Bitcoin volatility.
Looking for an easy entry into the crypto market with an attractive payout? Start today with the Dual Currency Certificate!
*The yield will be determined on the Initial Valuation Date/End of Subscription Date
— SEBA Bank AG (@WeAreSEBA) June 24, 2020
The product’s fact sheet claims the Dual Currency Certificate on BTC/USD is a Discount Certificate, suitable for investors who “anticipate a stagnating or a moderately rising or falling price of the underlying instrument.” Investors achieve a higher yield than they would by investing directly in the underlying asset if the market fulfills its expectation.
The certificate is issued at a discount from the current price of bitcoin and matures over the course of three weeks. Investors can receive a maximum yield of 3.23% if bitcoin’s price is equal to or greater than the strike price at the end of the maturation period.
According to the fact sheet,
If at maturity the underlying instrument trades below the strike price, the investor is exposed to price downside and may lose up to the entire investment.
SEBA outlined the new product as being aimed at investors who want to “harvest the high volatility” of bitcoin and have a “moderately positive view” on the crypto-asset.
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