Tagomi – the digital coins brokerage and trading firm headquartered in New York – has reportedly made lending or borrowing Bitcoin (BTC) and Ether (ETH), to support long or short transactions, available.
Reported by Bloomberg Quint on September 12, the initiative has a primary goal to simplify the process of shorting cryptocurrencies, via allowing different counterparties to enter from an individual platform.
According to the report, shorting digital assets requires traders to “call a host of brokers and trading desks to find the best rates for borrowing and risk the market moving against them during the time it takes to put on a trade.”
Kevin Johnson – Tagomi CEO – has shared about the hardships concerning applying such strategies to crypto:
“In other asset classes this would be done with one click, but in crypto it’s very long and tedious to try and put a short on. ”
Dennis Chou – Pantera Capital head of trading – further disclosed that shorting is a key asset in traders’ toolbox. According to Chou, the ability to short not only prove to be practical to the individuals attempting at betting against digital coins, but also to the ones with an aim to apply quantitative strategies, relative-value trades and hedging.
“The crypto space is volatile, so if you can’t short, you’re missing part of the puzzle.”