Structured Product
A structured product is a pre-packaged investment strategy that combines a bond or fixed-income instrument with a derivative component to achieve a specific return profile. These products are designed to offer customized exposure to market assets, often with features like capital protection, enhanced yield, or capped upside.
In the cryptocurrency market, structured products are widely used to generate income through covered calls or to protect capital using put options embedded within the product. They are ideal for investors who want to gain exposure to the growth of digital assets while managing downside risk.
Because they are often complex, they are typically sold as single instruments that simplify the process of managing multiple derivative positions. The underlying derivatives are often tailored to the investor's risk appetite and market outlook.