In a conversation with TheStreet Roundtable Scott Melker, James Putra, SVP of Tradestation’s strategy, broke the fact that traditional hedging strategies are ultimately viable in the Crypto market.
“In the past, we have not been able to implement traditional hedging strategies with cryptography,” Mercer pointed out, pointing to the lack of historical tools like options.
Putra didn’t hesitate.
“100%,” he replied. “We see a lot of interested people doing basic transactions… ETF products are used as margins to utilize them in other areas.”
Founded in 1982, Tradestation is a US-based online brokerage company offering trading services for stocks, options, futures and cryptocurrency.
Originally known for its sophisticated tools tailored to professional traders and institutional clients, Tradestation has expanded its offering over the years to cater to retail investors as well. Tradestation Crypto, a Crypto Arm, provides users with access to a variety of digital assets, including Bitcoin, Ethereum, and integrates traditional market tools with digital asset trading.
Strategies such as cover calls and cash and carry trading are currently the realm of off-the-shelf (OTC) desks.
“It used to be all OTC and it was kind of a scary market, but it was fun at the same time,” recalls Putra. “Now you can do that on the right trading platform. Most major brokers have this.”
That evolution attracts more than just a hedge fund. Family offices and retail investors have begun to adopt both directional and non-directional strategies that previously were out of reach with crypto.
“We’re an individual, family office really starting to mix it up… the whole asset class.”
Still, the shift is far from complete. Only a handful of digital assets have robust futures and options markets.
“It can only be done with a small number of assets,” Putra pointed out. “Even these complex futures and options are not available in most markets.”
Products linked to Solana and XRP are emerging, but most institutional players are still focused head on one thing.
“Almost all the volume and interest is still in Bitcoin.”
And while capital is clearly flowing into the ecosystem, Putra provided the final warning.
“We might get the $10 trillion market capitalization we want,” he said.