Crypto derivatives platform Bybit expands into wealth management
Bybit, a crypto derivatives platform, is venturing into the wealth management business with the launch of Bybit Wealth Management. This new service allows users to manage, plan, and invest in crypto with no fees. The initial offering includes fund pools that offer a 4.5% APR on deposited USDT. These funds are managed by trusted third parties selected through a rigorous process and employ risk-neutral strategies. Bybit also plans to introduce structured products as part of the offering.
Main breakdowns:
- Bybit launches Bybit Wealth Management, a comprehensive service for managing and investing in crypto with no fees
- Fund pools offer a 4.5% APR on deposited USDT and are managed by trusted third parties
- Risk-neutral strategies are employed in managing the funds
- Bybit plans to release structured products in the future
- Bybit’s bitcoin futures market has seen increasing open interest and holds a significant market share
The expansion into wealth management comes as trading volumes in the crypto market have been declining. Bybit’s move allows it to tap into new revenue streams and cater to less active traders who prefer buy-and-hold strategies. Regulatory concerns around larger exchanges like Binance also present an opportunity for smaller platforms like Bybit. However, Bybit’s bitcoin futures volumes have been decreasing since March, reflecting the overall trend in the market.
Hot Take:
Bybit’s expansion into wealth management is a strategic move to diversify its offerings and capture new sources of revenue. With the decline in trading volumes, it makes sense for the platform to explore other business lines. By offering a comprehensive wealth management service with no fees, Bybit aims to attract less active traders and capitalize on the growing interest in crypto investments. However, the success of this venture will depend on its ability to differentiate itself from established wealth management platforms and provide value-added services to crypto investors.
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