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Even as global cryptocurrency markets remain extremely volatile and regulators continue raising concerns about the asset class, the fact remains that investor demand for such assets keeps booming, making the space a potentially lucrative one.
To capitalize on this opportunity, more companies are making bids to open crypto access up to ever-more investors, hoping to reap fees on investments made in the asset class.
This trend was further illustrated this week by two new developments:
Robinhood said it will start offering Bitcoin and Ether trading. Robinhood, a US-based stock trading app, announced that it will start offering Bitcoin and Ether trading for free on its mobile app next month, and potentially add other cryptocurrencies down the line. This move will give Robinhood’s existing clients access to the cryptocurrency market, while also allowing the company to cross-sell its premium account to active cryptocurrency investors, in what Robinhood says is a $550 billion market. The company’s premium account already targets sophisticated investors by enabling services like leveraged trades and after-hours trading.
Trading Technologies partnered Coinbase to provide crypto access to institutional investors. Trading Technologies, a trading software provider, has partnered Coinbase, one of the US’ biggest crypto exchanges, to give its institutional investor clients access to cryptocurrency markets. Trading Technologies already works with major exchanges including Deutsche Borse, Nasdaq, CME, and Cboe, and said the deal followed strong demand from users on these venues for crypto market access. These clients will now be able to engage in spot Bitcoin trading, and tap into Bitcoin futures products. They will also have access to market data and automated trading tools to trade cryptos on GDAX, Coinbase’s trading platform.
Companies wishing to capitalize on cryptocurrency demand will have to act quickly.It’s increasingly apparent that, despite incumbents’ and regulators’ reservations about the asset class, companies providing investment and trading services will now be under increasing pressure to give their clients access to cryptocurrency markets, or risk seeming out of touch with public sentiment, as global demand for the assets accelerates and more companies oblige.
However, any companies that wish to capitalize on this opportunity would do well to follow in Robinhood and Trading Technologies' footsteps and roll out such services quickly, as it seems increasingly likely that US, EU, and UK regulators will soon act on their warnings and clamp down on the sector.
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By Maria Terekhova