firm Archives -
The U.S. Commerce Department has lifted the ban on American firms selling products to China’s ZTE Corp., removing the final hurdle for the company to start rebuilding its business.
The ban was removed after ZTE paid the final tranche of a $ 1.4-billion penalty by placing $ 400 million in escrow at…
In the latest dispute over how to regulate the sharing economy, a peer-to-peer car-renting company filed a lawsuit against Los Angeles International Airport on Thursday, claiming the airport wants to impose the fees and permit requirements of a full-blown rental car company on the online firm.
Former top executives at ITT Educational Services, the parent company of defunct ITT Technical Institute, have settled fraud charges with the Securities and Exchange Commission, avoiding a trial that was slated to begin Monday.
A judgment order entered Friday puts to rest civil fraud charges filed…
This week one of Europe’s largest speed trading platforms and exchange-traded fund (ETFs) dealers, Flow Traders NV, announced the firm is entering the cryptocurrency space by offering bitcoin and ethereum exchange-traded notes (ETNs) to its clientele.
Speed Trading Platform Flow Traders Enters the Cryptocurrency Trading Ecosystem
The Amsterdam market maker, Flow Traders, provides liquidity to its customers by providing traders bid and offer prices for Exchange Traded Products (ETPs). Flow Traders was founded in 2004 and has become one of the top ETP exchanges in Europe, pulling in over €250 million in revenue per year. Now the trading platform has announced it’s entering the cryptocurrency space by providing customers ethereum and bitcoin ETNs. According to Flow Trader’s Co-Chief Executive Officer Dennis Dijkstra, the company’s trade volumes have “dramatically increased.”
“People underestimate crypto,” Dijkstra explains during an interview on July 6.
It’s big, and it is to be regulated very soon. The market participants are much more professional than people think. Institutional investors are interested — we know they are because we get requests.
High-Frequency Traders Polarized by Bitcoin
Speed trading otherwise known as high-frequency trading (HFT) is a technique that uses algorithmic swaps to trade products at high speeds, and fast turnover rates. Typically HFT operations trade extremely large volumes of trades which in turn makes up the low margins offered by the exchange. Flow Traders is not the first high-speed trading company that’s entered the cryptocurrency ecosystem. Five well-known HFT dealers Tower Research, Susquehanna, Jump Trading, DRW Holdings, and Hudson River are selling cryptocurrency products to clients as well. The proprietary trading firm DRW Holdings claims its been swapping cryptocurrencies since 2014.
“What’s surprising me is how polarizing bitcoin is,” Bobby Cho the head of over-the-counter trading DRW’s OTC subsidiary Cumberland Mining.
Everyone has a viewpoint on bitcoin, whereas with other asset classes you either care or you don’t care.
Focusing on the New Asset Class
Flow Trader’s Dijkstra details that the firm has been hedging its bitcoin (XBT) and ethereum ETNs with CME Groups and Cboe’s XBT products. The XBT provider’s managing director at Coinshares Ltd., Laurent Kssis, says with firms like Flow Traders purchasing ETNs they continue to see steady institutional demand for their cryptocurrency exchange-traded notes.
“With the growing interest from institutional clients willing to invest in digital assets, I can see why so many proprietary trading businesses are now focusing on this new asset class,” Kssis added.
What do you think about Flow Traders getting into dealing with cryptocurrency ETNs and futures products? Do you think more HFT platforms will flock to digital assets? Let us know your thoughts on this subject in the comment section below.
Images via Shutterstock, and Flow Traders.
The post Europe’s Top Speed Trading Firm Flow Traders Joins the Crypto-Economy appeared first on Bitcoin News.
California Atty. Gen. Xavier Becerra plans to file a lawsuit this week against student loan servicer Navient Corp. and two of its subsidiaries, alleging the company steered borrowers toward more expensive repayment plans and provided incorrect information to them about their accounts, among other…
A little-known marketing firm may have exposed the personal information of every adult in the US.
This week the cryptocurrency firm Circle revealed it has seen a significant uptick in institutional interest. According to Circle CEO and co-founder, Jeremy Allaire says even though cryptocurrency markets were down in during the month of May the company saw a 30 percent spike from institutional clients last month.
Despite the Sliding Market Prices — Circle Sees a 30% Uptick in Family Offices and Venture Capital Firms Investing in Cryptocurrencies
Cryptocurrency markets are down over 69 percent since December 16, 2017, and the past few months of 2018 has been awfully bearish. However, during this period of time, lots of companies like Coinbase, Bitgo, Circle, and others have been opening their doors to institutional investors. This week according to Circle’s co-founder Jeremy Allaire the firm had seen a notable increase in from institutional investors.
“In May, which was a challenging month, we saw a sharp increase of unique new counter-parties,” explains Allaire during an interview this week. “A lot of folks on the institutional side are on-boarding, and getting their ducks in the row.”
Circle states that it handles roughly $ 2 billion USD worth of trades on its platform every month. Allaire explains that before the flurry of corporate clientele Circle couldn’t facilitate extremely large orders of $ 100K to $ 1Mn trades in a high-frequency fashion. However now ‘Circle Trade’ can handle those types of fast swaps, and the company emphasizes that since then interest has stemmed from family offices and venture capital firms. Circle notes this type of clientele added 15 times more transaction volume per day than last year. Allaire details this week the industry is maturing greatly stating:
Major institutional investors don’t go through a telephone broker. They go through an electronic interface — We’re maturing this into a more traditional product; it’s much faster and a more flexible way to trade.
Circle Details How it Lists New Digital Assets and How the Firm Will Handle Future Forks and Airdrops
The news from the Unicorn cryptocurrency firm Circle follows the company’s recent explanation of how the firm chooses digital assets to be listed on its trading platforms. Furthermore, the company has provided a form for cryptocurrency development teams to apply for an asset listing. Circle also takes time to explain how they will handle future blockchain splits, forks, and airdrops that stem from coins they list.
“Because these events can be sporadic and dependent on circumstance, we plan to evaluate on a case-by-case basis — We are more likely to support these events if they are planned, documented and communicated well in advance,” Circle details.
We’ll communicate our decision as to whether or not to support an event at least 5 days in advance through the Notices section of the exchange homepage and an email to users holding a balance in the asset affected.
What do you think about Circle seeing an increase in interest from institutional investors like family offices and venture capital firms? Let us know your thoughts in the comment section below.
Images via Shutterstock, Twitter, Pixabay, Circle, and EJ Insight.
Express yourself freely at Bitcoin.com’s user forums. We don’t censor on political grounds. Check forum.Bitcoin.com.
The post Cryptocurrency Firm Circle Sees Institutional Interest Spike 30% appeared first on Bitcoin News.
Tether has released a surprise “Transparency Update” that purports to show it has enough funds in the bank to cover the $ 2.6 billion of USDT in circulation. The company has stopped short of a full audit, however, leaving critics bemoaning Tether’s inability to settle the solvency debate once and for all.
Tether Tries to Dispel the FUD
Speculating over the solvency of Tether, and specifically whether its dollar-pegged stablecoin is actually backed by fiat reserves, is a pastime that has spawned entire Twitter personas devoted to the issue. Vocal Tether critic Bitfinexed has been joined by a growing chorus of critics demanding full transparency from Tether, which is part owned by Bitfinex. Tether has now obliged, producing, for the second time in six months, a legal report into its financial standing.
The report, which was produced by the law firm of a former FBI director, carries weight from a legal perspective. But it fails to provide cast iron guarantees that Tether is not operating a fractional reserve. Until the company’s accounts are professionally audited, the true state of Tether’s finances will remain a point of speculation.
“As many are aware, Tether and related parties have been the subject of scrutiny over the course of the past several months,” begins the Transparency Update. “We have spent our time largely disregarding these allegations, instead letting our efforts, and the continued faith of our community of users, speak for themselves.” Many cryptocurrency traders would rather Tether had addressed these issues sooner rather than letting the blind “faith” of its community serve as a guarantee.
Enter Freeh, Sporkin & Sullivan
The magnificently named Freeh, Sporkin & Sullivan are the legal firm who were handed the task of taking a snapshot of Tether’s bank balance. This they did on June 1, whereupon they confirmed that there were sufficient funds to cover all USDT in circulation on a 1:1 basis.
“Recent reports have opened our eyes to the fundamental lack of understanding surrounding Tether, the issuance and redemption mechanisms, and the compliance procedures that we have built,” continues the Transparency Update document. “To mitigate this, we will be taking additional steps aimed at opening up Tether to the general public and clearing away any uncertainty that may exist.”
The simple answer, and the one that cryptocurrency holders have been screaming out for, is for Tether to commission an independent audit. Only once that has been completed can the lingering doubt disperse and faith in Tether be restored. While today’s report is hardly the all-clear that the crypto community might have hoped for, its release still helped propel BTC up by $ 150, undoing the damage inflicted hours previously by the news of Bithumb’s $ 31 million hack.
Do you think Tether has the funds to cover all of the USDT in circulation? Let us know in the comments section below.
Images courtesy of Shutterstock, and Tether.
Need to calculate your bitcoin holdings? Check our tools section.
The post Tether Shows Law Firm Its Funds But Stops Short of an Audit appeared first on Bitcoin News.
Victor Li, the new chairman of Hong Kong’s CK Infrastructure, moved to expand the empire built by his billionaire father, Li Ka-shing, by offering more than $ 9 billion for an Australian pipeline operator.
WSJ.com: What’s News Asia