Cryptocurrency
A Swarm of Derivatives Traders Will Soon Have Access to Pure Bitcoin via QZ.com
According to QZ.com, “Bitcoin mania exploded last year, in part because of signs that big-time institutional money was getting ready to join the party. While the process of traditional finance getting on board has happened more slowly than the excitement would suggest, there are signs that puzzle pieces are still being put into place. For example, […]
According to QZ.com, “Bitcoin mania exploded last year, in part because of signs that big-time institutional money was getting ready to join the party. While the process of traditional finance getting on board has happened more slowly than the excitement would suggest, there are signs that puzzle pieces are still being put into place.
For example, more proprietary traders will have access to bitcoin thanks to a partnership between Coinbase, one of the biggest exchanges for trading crypto, and Trading Technologies International, which provides software kit for trading on global derivatives exchanges. Some of its customers are point-and-click traders who have roots in the trading floors that all but disappeared as markets became electronic. While more humble than their counterparts on Wall Street, they nonetheless provide trading volume that helps support important commodities and futures markets.
This follows last year’s launch of bitcoin futures—which, unlike bitcoin, are readily traded by regulated institutional firms. Volumes in those contracts, which give investors a way to speculate on an asset’s future price, haven’t yet soared but appear to be ticking higher.”