Financial derivatives provider Eightcap is now offering a contract for difference (CFD) based on the CoinDesk 20 Index (CD20), which offers a weighted performance of the largest digital assets.
The CD20 CFD is now available to traders in both fiat and USDT pairs as an over-the-counter (OTC) derivatives product to retail traders, according to an announcement on Monday.
CFDs are derivatives instruments where traders and brokers exchange the difference in an asset’s value at the opening and closing of a contract.
The CD20 CFD will “bridge the gap between traditional finance and the digital asset space by delivering institutional-grade crypto index access within a robust, compliant framework,” Eightcap said in the announcement.
Melbourne-based Eightcap holds regulatory licenses in the U.K., European Union (EU) and Bahamas, as well as its native Australia.
Provision for regulated CFDs represents growing maturity in the crypto industry as they provide traders with the type of investment products that they would recognize from the traditional financial (TradFi) world.