CMC Markets is an international securities trading platform with a substantive reputation within the global financial community. Recently, the organization has announced their intention to open up cryptocurrency betting options to all clients falling under the “retail” classification. The move has inspired a significant amount of hype within the cryptocurrency community, where institutional backing of cryptocurrency betting and trade is revered as a step on the road to mass embrace of cryptocurrencies and crypto-tech.
Previously, the company only allowed select institutional clientele within Great Britain to open positions betting on Ethereum and Bitcoin. This service initially began in March, and officials on the inside of the company have outlined that the project was incredibly successful, and that it created demand on the part of retail clients who also wanted to participate in the new and exciting markets. This is all according to David Fineberg, who operates as the commercial director for CMC Markets.
Following the spike in demand from smaller clients, the company decided to open up the BTC/USD pairings, as well as the ETH/USD combinations, to non-institutional, retail-level investors.
Spread Betting And CFDs
Many investors would like to invest in cryptocurrencies, but do not want to go through the hassle of personally having to hold the currencies themselves. Spread betting and CFDs are ways that investors can avoid this problem and bet on the ups/downs of the crypto market without participating in it directly themselves.
This is especially helpful when investors consider how prone traditional cryptocurrency exchanges are to hacking, errors, and glitches. Millions of dollars in cryptocurrencies have been lost by investors over the years as a result of problems on exchanges—or even by simple user error. But by using an established, respected broker and betting on the ups and downs of the market, investors can take advantage of the budding securities without having to deal with the hassle of international cryptocurrency exchanges.
CMC Markets Cryptocurrency Betting
CMC is not alone in their decision to open up the option to bet on the prices of cryptocurrencies on their brokerage. Traditional online brokers have been contemplating the idea for quite some time, and many opened up the market on their own platform following the Bitcoin explosion in price last year. eToro is one major market that took the plunge to embrace cryptocurrencies, inspiring several smaller markets to make a similar change within their own setup.
CMC Markets is a recognized exchange in many countries. Specifically, they are overseen by the FCA of the United Kingdom. Consequently, participants in this new market can be sure that the market is compliant with federal regulations regarding the transactions in which they are involved. This means that, while traditional cryptocurrency exchanges often do not have the federal backing, the government has at least some hand in the ways that these new exchanges can operate.
As CMC rolls out this service to a new group of their clientele, it is likely that other major brokerages will jump on the cryptocurrency bandwagon. Perhaps soon the community will see smaller altcoins being represented on major traditional brokerage and exchange platforms as well.