IDEG launches arbitrage solution for crypto investors looking for “de-risk option”

Rick Steves

Risk and uncertainty levels are at all-year highs and IDEG points to arbitrage as a way to provide a lower-risk strategy with no delta exposure.

IDEG Asset Management Limited (IDEG) has unveiled a service which aims to help crypto investors maximize returns with a risk-off strategy in face of the current volatile bear market for digital assets around the world.

Going by the name of IDEG Quant Arbitrage, the solution offers a de-risk option for professional and institutional investors as the professional digital asset manager builds a complete array of investment tools to address “all needs in the rapidly-evolving digital asset class”.

Capitalizing on price inefficiencies across spot and derivatives

Among the many strategies and methods used by investors to gain from their trading activities, arbitrage is increasingly favoured in recent times, says the firm which offers its automated trading platform to help investors to capture arbitrage opportunities at high speeds.

Applying a market-neutral strategy to capitalize on price inefficiencies across digital asset markets, including both spot and derivatives, IDEG leverages algorithms based on statistical analysis and quantitative modelling for arbitrage purposes.

Emma Hu, Head of Product Development, IDEG, said: “The always-on global nature of digital assets creates significant arbitrage opportunities for investors but differing exchange policies, transaction speeds and costs, and regulatory hurdles all pose risks to the successful and profitable application of arbitrage. IDEG’s market-leading automated trading and risk control algorithms ensure arbitrage execution at high speeds as geographic location, time of day, and even different news cycles can all move asset prices. We will also help investors capture opportunities via a diversified basket of digital assets with deep liquidity which is the key to high-frequency arbitrage.”

IDEG offers an automated trading platform as well as automated trading and risk control algorithms to capture arbitrage opportunities, with market neutral statistical arbitrage trading and transaction fees optimization. Most transactions go through Binance, where IDEG holds the VIP 9 category level for the lowest transaction fees.

Arbitrage strategies range from Funding Rates, Spot-deliverable Dutures, Cross-Exchange Arbitrage and Option Arbitrage. Third party custodied exposure is managed through the firm’s compliance, risk and internal controls processes.

IDEG Asset Management Limited is a BVI Approved Manager licensed by the British Virgin Islands Financial Services Commission, and acts as investment manager.

The firm allows accredited and institutional investors to access digital asset market opportunities with varying risk exposure, including actively managed Trust products; Interest earning products; Mining backed products; Emerging products with exposure to DeFi strategies; and Structured solutions.

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