Every Bitcoin trader and investor wants the industry to succeed, because it means more money in their pockets. With the current predictions in trajectory for the ongoing price increases, many experts believe that the dark times for Bitcoin is over, which means its time to bring in more investors. The biggest trading firms are working together to help the cryptocurrency market thrive by bringing in bigger institutional investors.
It is clear, from the recent changes to Bitcoin’s price, that Bitcoin is strong enough to hold its own in the financial world, though there’s still room to grow. The only way to achieve the desired impact is with institutional investors, though they have historically been quiet on their willingness to get into cryptocurrency. Much of their resistance has been due to the lack of regulatory measures and the overt transparency. Luckily, many countries are working on regulations that eliminate these concerns.
Some of the investors believe that the easiest way to deal with these concerns is by offering information to the institution regarding actionable liquidity. Concerning these ideas, trueDigital Holdings LLC decided to partner up with several other firms, developing a price index for Bitcoin and Ether separately.
In a press release, trueDigital Holdings LLC said,
“The trueDigital reference rates, comprised of bid and offer pricing from top cryptocurrency market makers include automated anti-manipulation safeguards such as outlier detection and price banding. Robust policies surveil potential manipulation and review the contributing sources on an ongoing basis in line with the IOSCO based methodology.”
The CEO of the trueEX Group LLC, Sunil Hirani, said that the rates they published act as,
“a basis for derivative products such as futures or an exchange-traded fund, take in data from market making firms.”
The firms that presently are partnered up with trueDigital are limited, only including XBTO Group, Circle, DV Chain, the Hehmeyer Trading Group, and Altonomy.
Another contributor to this effort to bring in investors to the crypto world is Genesis Global Trading, which presently ranks in as one of the largest OTC market makers of crypto. They are not going out and establishing partnerships, but they are offering up their own data.
Hirani, of true Digital, believes deeply that financial institutions are craving to get into the cryptocurrency market.
Despite this confidence, he said,
“The marketplace is sorely lacking the necessary foundation, infrastructure, and platforms that institutional investors have come to expect in other important markets.”
To help bring in investors, and perhaps put some of their worries aside, TrueEX, which is a trueDigital affiliate, decided to launch a new marketplace. This marketplace would feature regulated measures for digital assets, where the contracts would be developed for Bitcoin non-deliverable forwards. The settlements themselves would be paid out in U.S. dollars.
In a statement from ED&F Man Capital Markets, Brooks Dudley said,
“NDFs on digital assets are the logical next step for institutional investors who are seeking exposure to Bitcoin and other digital currencies.”