New York Exchange eTrade to Expose Bitcoin and Ethereum Crypto Assets To Its 5 Million Clients
Online trading firm from New York, E*Trade is reportedly preparing to offer cryptocurrency trading on its platform. They are going to start crypto trading initially with Bitcoin and Ethereum but will consider adding other currencies in the future.
Once the platform is ready, E*Trade would become one of the largest securities brokerages to allow crypto trading. They will be a direct competitor to well-established firms like Coinbase which have made names for themselves as go-to places for such transactions.
The valuation of these these crypto firms is skyrocketing right now, with Coinbase valued over $8 billion and Robinhood issued at $5.6 billion.
E-Trade Financial Corporation offers an electronic trading platform to trade financial assets including common stocks, preferred stocks, futures contracts, exchange-traded funds, options, mutual funds, and fixed income investments. It also provides services for employee stock ownership plans, advisor services, margin lending, online banking, and cash management services.
Their services are geared to active traders and the mass affluent, which is defined as investors with more than $100,000 in tradable assets. New York Times crypto journalist Nathaniel Popper said:
“In the wake of TD Ameritrade quietly opening Bitcoin trading for some of its customers, I was just told that eTrade is preparing to begin offering both Bitcoin and Ether trading to its 5 million or so customers and is just finalizing the third party to actually hold the coins.”
Earlier this week, rivals TD Ameritrade might be testing Bitcoin trading on Nasdaq. TD Ameritrade is not new to the crypto as last year the retail brokerage company had invested in ErisX, a trading platform that planned to launch spot contracts in Q2 of 2019 after receiving DCO approval from the CFTC.
With these platforms coming up, we can hope that the liquidity for Bitcoin and Ethereum. For Bitcoin and the other top-10 coins, where over-the-counter (OTC) trading desks and algorithmic market makers exclusively focus, there is a lush oasis of liquidity where you can trade millions of dollars without moving the market.
Liquidity dries up sharply afterward. Companies like E*Trade will be essential in this undertaking. On the same note, Cambridge Associates wrote:
“Despite the challenges, we believe that it is worthwhile for investors to begin exploring this area today with an eye toward the long term. Though these investments entail a high degree of risk, some may very well upend the digital world.’’