We would love it if all our investments went smoothly and brought us some sort of financial reward. For the most part, there is nothing guaranteed in the world of investing, but according to crypto-friendly financial institution SEBA, perhaps bitcoin investors can make some guaranteed interest here and there.
SEBA Brings New BTC Product to the Table
The bank has announced the launch of a new bitcoin product that will allegedly allow investors to earn yield with all their crypto investments. The product is known as the Dual Currency Certificate. It is linked to the BTC/USD exchange rate and allows investors to get in on bitcoin at a discounted price. Granted the currency spikes within a three-week period, the investors taking part in the program can earn as much as 3.23 percent in interest.
This sounds great at first. However, there’s something of a catch in that investors stand to lose all their money rather quickly granted bitcoin drops down at this three-week maturity level. SEBA announced in an official statement:
This structured product should be regarded as a hold-to-maturity investment. Even if the performance of the underlying is stable or positive, the price of the product during the term can be considerably below the issue price.
At the same time, SEBA has what they’re calling a “moderately positive” view of bitcoin at the time of writing. The bank doesn’t expect the currency to drop within the coming weeks and believes at least the first round of investors are likely to make some solid earnings through their BTC holdings.
Still, in looking at the situation, one can’t help but acknowledge the risk that if anything goes wrong, they stand to lose all their holdings. While this is virtually a problem with every investment, bitcoin and its altcoins cousins have shown themselves to be very volatile in the past. To be fair to BTC, it has held its ground rather well over the past two months. It has remained in the mid to high $9,000 range after dropping as low as $3,800 in mid-March.
Still, there’s nothing set in stone with bitcoin, as we’ve all seen over the past five years. The cryptocurrency can move up in spades just as easily as it can perform a vanishing act. Those who invested right as the coin hit $20,000 in December of 2017, for example, saw just a few months later that their investments were suffering, given that by next February, the currency had fallen back down to $11,000.
Crypto Can Go Down and Up Very Easily
By Thanksgiving of the following year, the currency had lost more than 70 percent of its overall value.
Those interested in taking part in the new investment strategy have until July 7 to sign up. Approximately 10,000 separate certificates will be released, though at press time, the products are only available in certain regions of Europe.
