Bitcoin Exchange Guide (BEG) has previously reported on cryptocurrency exchange, ErisX’s decision and success in launching a spot market.
A spot market is defined as a public market in which financial instruments are traded for immediate delivery. As for the firm’s support, they have previously disclosed that some of the dollar-trading pairs include Bitcoin [BTC], Bitcoin Cash [BCH], Litecoin [LTC], and Ethereum [ETH].
In a recent post shared by Coin Telegraph, ErisX’s spot market has been elaborated upon – giving more insight on what can be expected of service, the overall functioning of the platform and their goal in trying to attract institutional investors. Here’s an overview of what has been shared:
ErisX’s Goal Within Crypto Sphere
ErisX’s aim towards the crypto sphere is to supposedly ensure that investors within the capital market are able to trade cryptocurrencies as well. As reported by Coin Telegraph, near the end of April, some 11 million TD Ameritrade clients have been experimenting with ErisX’s crypto exchange. As for their offering of the spot market, the exchange is hopeful of launching derivatives once the U.S Commodity Futures Trading Commission (CFTC) approves it.
Overall Functioning of ErisX’s Platform
As per the claims made, ErisX’s platform is no different that Coinbase, as it requires users to be knowledgeable on their KYC, as well as other “compliance checks” such as AML/CFT.
Why Choose Institutional Investors?
The need to introduce institutional investors within the crypto sphere has been highly spoken of. Some of the main cases made include the need to bring in new money into the market. Many believe this can be achieved through institutional investors – ultimately helping to break free from volatility.
As for ErisX’s reasons for wanting to attract institutional investors, it seems like more interest comes from those who have invested in ErisX’s fundraising for the spot market launch – primarily the likes of TD Ameritrade, DRW Holdings, CBOE, TradeStation and NASDAQ among others. Nonetheless, ErisX also seems to be in favor of institutional investors, as the latter’s participation has contributed in mature traditional markets.
TradeStation supposedly invested in ErisX because of the similarity both firms have. In particular, the online securities and futures firm trusts that ErisX has the ability to “help bridge the gap between traditional markets and crypto markets,” adding that said investment will help bring more players within the crypto sphere.
Then we have TD Ameritrade, who seems to have invested in ErisX because it has been CFTC-approved as an exchange. Coin Telegraph also reasoned that TD Ameritrade’s decision comes from the fact that ErisX can bring value and transparency to customers.
Executive VP at TD Ameritrade, Steve Quirk, shared that their clients are more attracted to an exchange that is “legitimate, regulated and transparent,” adding that their products will be “more accessible to retail clients.”