Speed Trader moves Into Crypto Bets Opposed by regulators

Lloyd Doyle
July 9, 2018

According to Bloomberg, in the first quarter of 2018 Flow Traders NV traded the equivalent of $284 billion in Euros of ETFs worldwide, including the equivalent of $167 billion in Europe, making the company the largest trader on the "Old Continent".

Ironically, the Dutch Authority for Financial Markets (AFM) do not feel the same way.

In order to build its own capability, the Exchange will now offer ETNs or Exchange Traded Notes which are based on Ethereum and Bitcoin. 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.

The energy from Flow Traders' investors isn't returned by its regulator, the Dutch Authority for the Financial Markets.

Flow Traders NV Co-Executive Director Dennis Dijkstra said that cryptos are underestimated, and added that cryptocurrencies market "is big, and it's going to be regulated very soon". The 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 goal as a currency, we don't regard it to be an asset class", said Nienke Torensma, a spokeswoman for the AFM, in a statement.

Flow Traders NV is an Amsterdam based high-speed trader.

Flow Traders continues to trade in the Bitcoin and Ethereum ETNs [COINXBT:SS and CORINTH:SS]. Flow Traders hopes to leverage its pedigree as a speed trading behemoth to hedge each trade.

More notably, giving institutional investors the ability to trade crypto ETNs or funds in the cheap and straightforward manner of conventional fiat trades could positively affect the popularity of digital assets trading. With the potential of crypto, the company has been trying to find new ways to hedge trades, which is benefiting its forex trading business, though the company is keeping it secret on how it does this. "Institutional investors are interested- we know they are because we get requests". And this would also be potentially unwelcome for many cryptocurrency enthusiasts. Digital currencies are particularly attractive because speed traders make the most money in the most volatile markets, Bloomberg notes. Goldman Sachs is setting up a cryptocurrency trading desk.

Publicly traded funds would widen the interests of digital currency as an asset class by facilitating an effortless and economic way of investing in the likes of Bitcoin and Ether.

Other reports by Iphone Fresh

Discuss This Article