Digital prime brokerage GCEX has launched over-the-counter (OTC) options trading on Bitcoin and Ethereum, expanding its cryptocurrency derivatives offering for professional and institutional investors seeking regulated access to digital asset trading strategies.
The new service is provided through GC Exchange Limited, the company's UK entity authorized and regulated by the Financial Conduct Authority (FCA).
The offering allows eligible hedge funds, asset managers, family offices, and other professional market participants to trade Bitcoin and Ethereum call and put options through GCEX's institutional OTC desk.
At launch, the company is offering European-style options with monthly expiration dates and settlement in fiat currencies, providing institutional investors with additional tools to manage their cryptocurrency exposure.
Clients can request pricing directly from GCEX's trading desk, with quotations sourced from its Tier 1 liquidity providers.
The platform also integrates options trading information into XplorPortal, GCEX's reporting system, allowing clients to monitor positions, valuations, expiration dates, and settlements alongside existing foreign exchange and digital asset trading activity.
The new instruments are designed to support several institutional trading strategies, including hedging cryptocurrency holdings, managing price volatility, and implementing options-based market positions.
For options buyers, potential losses are limited to the premium paid, while sellers may face losses exceeding the premium received.
GCEX Founder and CEO Lars Holst said institutional clients had been seeking regulated ways to hedge their digital asset exposure without the need to establish separate relationships with cryptocurrency exchanges.
According to the company, GCEX hedges options transactions with its liquidity providers rather than retaining the opposite side of clients' positions.
The launch strengthens GCEX's institutional product portfolio, which already includes foreign exchange liquidity, digital asset trading, and brokerage technology solutions.
The company also operates through regulated entities in Europe and the United Arab Emirates, supporting its broader strategy of providing professional investors with integrated traditional and digital financial market services.
GCEX plans to review the addition of further cryptocurrencies based on institutional demand.
The development highlights increasing institutional interest in cryptocurrency derivatives as trading firms seek more sophisticated tools for managing digital asset risk within regulated financial environments.
