Crypto Structured Products: Maximizing Yields During Choppy Markets

The crypto market is notorious for its volatility, exemplified by the tumultuous events of 2022 when Bitcoin plummeted to a historic low of around $17,000 during one of the most catastrophic crypto crashes in its history.Yet, by the start of 2024, Bitcoin experienced a tremendous rally, shattering records with a new all-time high of over $73,730 by mid-March of 2024. 

In light of these dramatic fluctuations, countless retail and institutional investors are seeking ways to maximize their holdings while taking advantage of volatility. Trading volumes for crypto derivatives are on the rise, and the use of futures, options and perpetual swaps to hedge against tail risk events is becoming increasingly popular.

However, crypto derivatives trading can be incredibly complex, and novice investors are turning toward ready-made solutions and/or structured products to participate in this space.

This article examines crypto structured products and why they’re becoming popular with retail and institutional investors.