TradeStation Aims To Solve The Crypto Trading Liquidity Problem With New Service
15 Enero 2019 - 4:26AM
ADVFN Crypto NewsWire
TradeStation President John Bartleman
Despite the decline in the value of the leading
cryptocurrencies and growing security concerns about digital tokens
in general, TradeStation, the Plantation, Florida-based online
trading company, is gearing up to provide cryptocurrency trading to
its customers.
The product is expected to go live
in the second quarter and aims to address what it sees as a big
problem in the current cryptocurrency trading ecosystem: a lack of
liquidity necessary for institutional players to get
involved.
“There is more institutional
appetite for digital assets,” said TradeStation president John
Bartleman. “A lot of these brokers and exchanges have formed
liquidity pools that are too disjointed for larger customers or
institutional traders. We can provide a great solution for the
higher end. ”
As it stands now, cryptocurrency
investors looking to purchase a lot of digital tokens have to go
off exchanges to transact with an over-the-counter desk, which
could open them up to higher fees. Another option is to open
accounts at a number of brokers and exchanges to get access to
enough liquidity, which is not only costly but can be
time-consuming. Bartleman said TradeStation aims to have enough
liquidity to enable traders to conduct all their transactions at
one place. To meet that end, he said TradeStation is partnering
with the exchanges and liquidity providers to provide deeper
liquidity pools that aren’t disjointed. Bartleman noted that the
cryptocurrency trading space is evolving and that while exchanges
and brokers have dominated the first wave, a platform that can
connect it all together will be welcome.
“We are focused on the client
relationship,” said the TradeStation executive. “We want to provide
the best experience for customers. We don't have to manage every
aspect,” referring to those brokers and or exchanges that have
embraced a go-it-alone mentality when it comes to cryptocurrency
trading.
TradeStation has been paving the
way to offer cryptocurrency trading to its clients for some time
now. Last year it formed a subsidiary
dubbedhttps://www.tradestation.com/crypto/"
href="https://www.tradestation.com/crypto/" rel="nofollow noopener
noreferrer" target="_blank"> TradeStation Crypto and when CBOE
Word Markets and CME CME Group launched their bitcoin futures in
the early part of 2018 it was one of the first brokers to offer it
to its customers. It was also among the first in its industry
to provide customers with access to real-time market data in its
trading analysis platform for Bitcoin, Ethereum, Bitcoin Cash and
Litecoin.
The online brokerage is currently
working out the details of the new product offering including which
digital tokens it will provide trading for. Bartleman said it will
likely include the top four or five digital tokens. Customers will
be able to open an account and fund it with cash and if they want
to trade cryptocurrencies they can do so out of the cash.
Customers, as a result, will be able to easily move in and out of
the service via a digital wallet that TradeStation will manage.
“We believe investors and traders are seeking ways to access
and trade cryptocurrency products similar to the way they trade
traditional capital markets – and through a trusted and familiar
brand and company,” Bartleman said in prepared remarks. “Our focus
will be to provide the tools and services that serious traders
require to trade across multiple asset classes, including
crypto.”
The move on the part of
TradeStation comes at a precarious time for the cryptocurrency
marketplace. This past weekend bitcoin, the leading digital token,
fell below $3,500, a far cry from the days when it was nearing
$20,000 a token. Concerns are mounting that the digital token
marketplace is susceptible to so-called 51% Attacks, in which
hackers can make changes to the blockchain. The prices of the
leading digital currencies recouped some of the weekend losses but
the sell-off underscores the volatility in the
marketplace.
It is something that may be bad
news for retail investors but could mark a big entry point for
institutions. “The correction in the price needed to happen for a
lot of the players like us to build out a real solution,” said
Bartleman.
Source: Forbes
By
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