European Speed Trader Begins Trading Bitcoin and Ethereum Exchange Traded Notes (ETN)

Marco Green
July 9, 2018

In what could potentially be hugely significant for the future of institutional investment in crypto, Bloomberg reports that Flow Traders has become the first trading firm in the world to publicly acknowledge that it is actively trading crypto ETNs on regulated exchanges. AFM's spokesperson Nienke Torensma explained that the organization warns license holders as well as other customers to stay away from taking part in crypto activities.

This week one of Europe's largest speed trading platforms and exchange-traded fund (ETFs) dealers, Flow Traders NV, announced the firm is entering the cryptocurrency space by offering bitcoin and ethereum exchange-traded notes (ETNs) to its clientele. Effects are already being felt as XBT Provider, who issues crypto exchange-traded notes in Sweden has reported an increase in trading of its securities in recent months.

While the Dutch-based company is moving onward into cryptocurrency trading, the country's regulators are wary of the move. Soon it will, for the very first time in crypto history offer in public domain the buying and selling of crypto notes which is on regulate d stock exchanges. Market participants are much more professional than people think. She also said that this whole thing is actually prone to abuse, given the asset of the innovation and anonymity that it could offer. "Given its inability to serve the promised objective as a currency, we don't regard it to be an asset class", she continued.

Flow Traders is a leading global technology-enabled liquidity provider, specialized in Exchange Traded Products (ETPs). According to Flow Trader's Co-Chief Executive Officer Dennis Dijkstra, the company's trade volumes have "dramatically increased".

In order to reduce risk, Flow Traders found different ways of hedging.

The government has suggested that users should exercise caution when investing or trading in such virtual coins, essentially because of the new business model they follow. While five other speed traders are now operating in the United States of America with regard to cryptocurrency derivatives, Flow Traders NV is reported to be the first firm to disclose its trading on regulated stock exchanges. Digital currencies are particularly attractive because speed traders make the most money in the most volatile markets. "Institutional investors are interested- we know they are because we get requests". However, he refused to reveal whether the underlying cryptocurrencies are also used for hedging. According to Torensma, cryptocurrency regulations need to be finalized worldwide.

Other reports by Click Lancashire

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