ErisX Spot Market Launch: The Legal Line in the Sand for Institutional Investors Involvement

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.”

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Nirmala Velupillai
Nirmala Velupillai
Nirmala is a blogger who has been fascinated by the world of technology and its contributions to societal development. While a novice, her eager to learn about the crypto world has led her to write a number of pieces on its positive and negative aspects. On her spare time, she indulges in understanding and building statistical models and enhancing her painting skills.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

CFTC Chair Is Ready to List More Crypto Based Futures; Just Waiting on SEC's Clearance

The Chairman of Commodity Futures Trading Commission (CFTC), Heath Tarbert, has said that they are waiting for SEC clearance on more digital assets to...

Mercedes-Benz Parent, Daimler AG, Pilots PoC Supply Chain Data Sharing System with Ocean Protocol

Daimler AG, the Mercedes Benz carmaker, has partnered with the decentralized data-sharing platform - Ocean Protocol. The partnership would help the Daimler to store their...

Insufficient Clarity for Regulations And Taxes May Force US Investors Move On: Coinbase Tax VP

The Chief Tax Officer of Coinbase, Lawrence Zlatkin, believes that lack of clarity in the US' crypto taxes could alienate prospective investors. He shared...

Chinese Ride-Hailing Unicorn, Didi Chuxing, to Pilot Digital Yuan; First Mass Scale Use of DCEP

China's 'Uber,' Didi Chuxing, will test run the digital yuan according to an announcement on July 8. The Chinese ride-hailing unicorn has over 500...

Kyber Network Makes DeFi Debut Following a Protocol Upgrade and KyberDAO Mainnet Launch

Kyber Network has launched a protocol upgrade dubbed 'Katalyst' alongside Kyber DAO on the Ethereum mainnet as per a blog post yesterday by the...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today