GCEX Expands Institutional Offering with Regulated Digital Asset Options for BTC and ETH

GCEX has expanded its institutional offering by launching Bitcoin and Ethereum options through its UK-regulated OTC desk. The move provides hedge funds and asset managers with a regulated framework to hedge digital asset exposure or take speculative positions without the need to onboard with a crypto exchange, streamlining workflows for professional market participants.

What was announced

The new service, provided by GC Exchange Limited, targets eligible professional and institutional clients including family offices and asset managers. These clients can now access call and put options on Bitcoin (BTC) and Ethereum (ETH) by requesting quotes directly from the GCEX OTC desk. Pricing for these instruments is derived from the firm's Tier 1 liquidity providers.

At its initial launch, the desk is offering European-style, fiat-settled options featuring monthly expiries. These products allow firms to hedge existing digital asset holdings, sell options against held assets, or enter positions where the buyer's maximum loss is limited to the premium paid. Conversely, sellers face potential losses exceeding the premium received.

Integration is a key component of the rollout; all positions, expiries, valuations, and settlements are reported via XplorPortal. This allows clients to view their options activity alongside existing digital asset and foreign exchange (FX) trades in a single interface. GCEX acts as the counterparty for these trades but hedges every transaction with its liquidity providers to avoid taking the opposite side of client positions. While the service starts with the two largest cryptocurrencies by market cap, the firm has indicated it will review expanding the range based on client demand.

"Our institutional clients have been asking for a regulated way to hedge and manage their digital asset exposure without onboarding to an exchange. Options booked through our OTC desk give them that, with the same regulated counterparty, onboarding and reporting they already use for digital asset spot and FX. We hedge every trade with our liquidity providers, so we don't take the other side of our clients' positions. We're starting with Bitcoin and Ethereum and will review the range in line with client demand."

Lars Holst, Founder and CEO, GCEX

The companies involved

GCEX is a digital brokerage headquartered in London that provides institutional and professional clients with access to deep liquidity in CFDs on digital assets and foreign exchange. The group operates through several separately authorised entities to navigate global regulatory frameworks. In the United Kingdom, GC Exchange Limited is authorised and regulated by the Financial Conduct Authority (FCA). Its European operations are handled via GC Exchange A/S, which is regulated by the Danish Financial Supervisory Authority as a Crypto-Asset Service Provider under the EU’s Markets in Crypto-Assets Regulation (MiCA).

The firm also maintains a presence in the Middle East through GC Exchange FZE, which holds a Virtual Asset Service Provider license from Dubai’s Virtual Assets Regulatory Authority (VARA). Beyond its brokerage services, the company provides crypto-native technology solutions through its XplorDigital suite. GCEX has previously attracted interest from investors such as True Global Ventures, a global venture capital firm that invests in serial entrepreneurs. The company has established itself as a bridge between traditional finance and the digital asset ecosystem, focusing on providing regulated entry points for sophisticated market participants.

What FF News has reported before

FF News has closely followed GCEX’s expansion into key financial hubs and its efforts to bolster its institutional leadership. We previously reported on the company’s growth in the Middle East with the news that GCEX Appoints Alya Marrakchi as Managing Director for Dubai Operations Following VARA Approval. The firm has also focused on internal talent to drive its buy-side relationships, as seen when GCEX Strengthens Institutional Reach with Robin Ejsmond Frey as Director of Asset Management Sales. Liquidity remains a core pillar of their strategy; earlier this year, GCEX and Cumberland Partner to Strengthen Spot Crypto Liquidity for Institutional Clients. Additionally, the group expanded its UK footprint when GlobalBlock, Part of GCEX Group, Launches Digital Assets Offering for UK Clients.

What this means

The introduction of OTC options by a regulated UK entity highlights a maturing market where institutional players demand sophisticated hedging tools without the counterparty risks associated with unregulated offshore exchanges. By offering fiat-settled, European-style options, GCEX is directly competing with traditional derivatives desks and crypto-native exchanges that have struggled to capture the most conservative tier of asset managers. This move puts pressure on other prime-of-prime brokerages to expand their crypto derivatives suites. It also raises questions about how quickly the industry will move toward more complex structured products as institutional appetite for digital asset volatility management continues to grow.