Jane Street Capital Is Trading Bitcoin As Wall Street Firms Catching On
The new word on the market is that Goldman Sachs and JP Morgan Chase have been trading cryptocurrencies. These are the two major banking firms in Wall Street. Jane Street operates in various countries, this is from London, New York and even Hong Kong, and it has been indicated as a group of coders who have a Ph.D., this is according to the New York Times.
The acceptance of this growing cryptocurrency by these mainstream trading means that big things are coming.
Jane Street is Among the High Tech Traders
The New York Times describes Jane Street as being high tech and secretive. The company is able to trade about $8-13 billion in a day; this is from bonds, options, futures, and various investment opportunities. Making it one of the big players in the market.
The Business Insider recently announced that Jane Street has also been playing in the pool of Bitcoin. The company does not want to be left behind of the new big thing that has kept the market buzzing for months. The insider further states the company will continue to enjoy the fruits the pool has to offer, well of course while the coins are still profitable and in demand.
But Jane Street operates a little different from the other companies in the market, that is Goldman Sachs and JP Morgan Chase. Just because these two companies announced their involvement with trading in the crypto market does not necessarily mean that Jane Street is copying them on this new trend.
Jane Street mainly focuses on arbitrage trading, which could lead to very exciting things in the crypto market, something that investors will need to keep an eye on. Arbitrage trading by definition is the simultaneous selling and buying of assets that are able to take advantage of the differing prices that might arise in various markets. So when we look at the crypto market, the spreads could be high, the BTC carrying up to 10% variance between the multiple carriers.
So for as long as promising results like these are continuing to emerge in the cryptocurrency market, expect Jane Street to stick around. But the company still wants to inform its esteemed clients that it is still making informed investment decisions and still doing active research before getting into any investment opportunities.
Traditional Bankers Are Buying In
With all the attention and big wall street getting into the crypto market, the cryptocurrencies are continuing to feel more and more legit to the investors in the market. Additionally, the public is becoming more aware of the existence of this new emerging market and the benefits it is able to provide.
The acceptance that is taking place in the mainstream trading environment is a clear indication of the growth that is taking place in the community every given day.
Other than a few investors such as Jamie Dimon who is in JP Morgan Chase calling the current crypto traders to be stupid, the trend of this new market is still catching fire. More and more banking giants are noticing the new investment opportunities that crypto markets are offering, they are even going a step further by clearing the Bitcoin features for their interested clients.
If the big companies are seeing the potential that the crypto market is able to offer, why be the only one standing on the sidelines and not jumping into the new investment opportunity.