Bitcoin is About to Get a Lot Easier to Trade
The company that pioneered some of the world’s most popular trading technology is venturing into cryptocurrency, making it easier for institutional traders to access bitcoin, Ethereum and other digital assets.
Trading Technologies International Inc.
Trading Technologies International Inc. has agreed to add the Coinbase marketplace to its roster in March, bringing investors one step closer to accessing the world’s biggest cryptocurrencies.
By supporting cryptocurrencies, Trading Technologies will make it easier for institutional investors and day traders to access the burgeoning asset class using software they are accustomed to. Although Trading Technologies customers already have access to bitcoin futures, the new setup may allow for arbitrage between the contracts offered by CBOE and CME Group, according to Bloomberg.
According o the company’s website, traders will be able to manually enter cryptocurrency trades using its software or automate the entire process using the same tools that sock traders currently enjoy.
Rick Lane, the head of Trading Technologies, was interviewed by Bloomberg on Thursday and issued the following statement:
“Institutions are trading with increasing frequency and regularity in these markets, although they’re doing so without institutional-grade, professional-grade technology. They’re largely underserved and there’s a lot of trading volume and trading opportunity left on the table.”
Trading Technologies links more than 40 markets around the world. It processed roughly $150 million worth of bitcoin contracts on Wednesday, according to data compiled by Bloomberg.
Coinbase has quickly emerged as one of the world’s biggest cryptocurrency exchanges. As of November, the exchange supports more than 13 million active user accounts. Earlier this week, the company disclosed that it earned $1 billion in revenue last year.
The platform is extremely popular because it supports the world’s biggest cryptocurrencies and enables easy purchase through fiat money. In just a few clicks, investors can buy and hold assets like bitcoin, Ethereum, Litecoin and bitcoin cash. The company is rumored to be adding a new batch of cryptocurrencies this year, with Ripple XRP among the leading candidates for inclusion.
Robinhood Adds Cryptocurrency
Popular stock-trading app Robinhood has announced that it too is entering the cryptocurrency market. The app has quickly made a name for itself by offering commission-free trades on stocks.
The company’s co-founder Baiju Bhatt described bitcoin as resilient, and says the digital currency system aligns with the values of the free trading app. Once launched on Robinhood, cryptocurrencies will become even easier to access for those without any trading experience.
However, the path forward won’t be easy, as the platform will have to find ways to scale with growing demand for cryptocurrency. Coinbase and others have struggled to maintain operations amid the unprecedented surge in trading volumes over the last three months.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.