TD Ameritrade Says Investors’ Interest in Crypto Futures Spiked When Bitcoin Dropped Under $4,000
Back in December, Shawn Cruz, TD Ameritrade Manager of Trading Strategy, said that TD Ameritrade clients have regained interest in Bitcoin (BTC) after it fell under $4,000 a few months ago.
During this conversation, she said that the whole space is currently in its infancy and that it makes sense to see a lot of volatility. Indeed, the market has been driven by sentiment during the last few years and there are several companies experimenting with different use cases.
This shows that Cruz thinks in a different way compared to other financial experts from other companies that spread FUD about Bitcoin but praise blockchain technology.
She explained that TD Ameritrade offers Bitcoin futures trading for clients. About it, Cruz explained that they were very excited about Bitcoin when it dipped under $4,000 back in November 2018.
Cruz has also talked about Bitcoin and its relation to the stock markets. She mentioned that when regular stock markets take a beating, demand for Bitcoin should increase.
About it, she said:
“It’s really interesting as we’re seeing this volatility in the market. Watching the ebb and flows of money. Watching where it’s flowing out of and where it’s flowing into is something that if you are a market spectator, someone who really likes to pay attention to these rotations in and out of asset classes. Right now I think you are getting a really enormous amount of data.”
Bitcoin and stock market charts tend to not be correlated during long periods of time. Furthermore, this shows that Bitcoin is an asset that moves according to the sentiment in the community.
According to Cruz, demand from customers drove TD Ameritrade to offer Bitcoin futures trading. On the matter, she commented that they want to make sure it is liquid and hat it is regulated in some exchanges. They’ve offered Bitcoin futures on these principals. Currently, the company invested in the ErisX exchange, which will apparently allow clients to have more products.
At the moment, the demand for digital assets has substantially increased. However, the firm is waiting for liquidity and regulation to take place before adding support to other cryptocurrencies.
There are several companies in the traditional financial market that are trying to offer services for institutional clients. One of these firms is Fidelity Investments that is going to launch custody solutions for users. In addition to it, the Intercontinental Exchange (ICE) is going to be launching the Bakkt platform to the market as well.
This Bakkt platform is going to provide users with the possibility to transact Bitcoin futures contracts. At the time of writing this article, Bitcoin is being traded around $3,479 and it has a market capitalization of $60.93 billion.