Bitcoin mining gear maker Canaan has tied up with cryptocurrency market maker GSR to offer its clients risk management products to protect themselves against volatility in Bitcoin prices.
Hong Kong-based GSR will offer through Hangzhou-based Canaan’s strategic partner Interhash, customised financial instruments such as swaps and collars, which could help them to avoid losses or boost their returns on inventory. Swap is a derivative instrument traded between two parties based on a specified notional amount that can be used for both hedging and speculating, while collar is an options strategy used by traders to protect against downside risks.