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Swissquote found a way to reduce bitcoat volatility



The Swiss bank Swissquote Bank SA issued an exchange instrument to reduce the risks associated with bitcoin volatility by transferring investors' assets between dollar and bitcoin accounts. This is reported by Bloomberg .

The first actively managed bitcoin certificate will transfer investors' assets from the digital currency to the phyto, using an algorithm based on "technical signals" and analyzing moods in social networks to predict the market.

Despite an eight-fold increase this year, the bitcoin rate tripled in peak at 25%. In this regard, traders tend to hedge the risks and show flexibility.

"Investors are delighted with the crypto currency, but not from volatility. To do this, we developed an algorithm that will help to control these risks, " - said the head of the marketing strategy of the bank Peter Rosenstraich.
The dollar reserve for providing a crypto-currency portfolio will be from 0% to 40%, depending on the choice of quantitative analysis algorithms.

Earlier ForkLog reported that the online bank Swissquote, in partnership with BitTorp, Bitstamp, launched a financial product that allows customers to use their trading accounts to exchange euros and US dollars for bitcoins .

Also recall that the head of the CME Group, Terry Duffy , recently  announced that the appearance of biticoins on the traditional financial markets will help reduce the volatility of "digital gold."