TD Ameritrade has expanded its exposure to the cryptocurrency sector following the announcement of an investment in the exchange of digital currency, ErisX. Founded in July 2010 to offer cash-settled futures swaps, ErisX deposited a Derivatives Compensation Organization (DCO) in 2017 at the Commodity Futures Trading Commission (CFDC). In the same year, the exchange decided to focus on digital activities. According to ErisX website, the exchange provides for the approval of the DCO in the first quarter of 2019 and the launch of futures contracts towards the end of 2019.
Investors supporting the DCO and Derivatives Exchange (DCM) include DRW Venture Capital, Valor Equity Partners, Virtu Financial, NEX Opportunities, CBOE Global Markets, CTC Group Investments, Digital Currency Group, Nico Trading, Pantera Capital and Third Stone Partners. – together with the well-known online broker, TD Ameritrade.
The new market platform will offer a trading platform for a number of cryptocurrencies to include Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH) and Litecoin (LTC). The exchange will facilitate cryptocurrency contracts as well as support customers' ability to participate in physically delivered futures. This means that the underlying cryptographic resource will be delivered on the specified delivery date.
This is not the first exposure of TD Ameritrade to cryptocurrency. The 11 million intermediary clients can currently trade Bitcoin futures through the Chicago Board Options Exchange (CBOE). This development will make it much easier for retail investors to gain exposure to digital resources. TD Ameritrade & # 39; s Managing Director of Futures and Forex, J.B. McKenzie, suggested which continues to see demand from its retail customers for access to trade in digital currency products. It also has advanced idea that this development could open further cryptocurrency products in terms of futures and spot contracts to retail clients as it progresses. Furthermore, it will be interesting to see if the inclusion of Ethereum, Litecoin and Bitcoin Cash gives them a market boost – as they did not have the exposure that Bitcoin had on the futures market.
In a Press releaseTim Hockey – president and CEO of TD Ameritrade – had this to say in relation to his investment:
"As an investor in ErisX, in addition to strategically collaborating on the initiative, we look forward to continuing our innovation goals by partnering with a regulated exchange with CFTC that will include futures on digital assets and spot contracts. on a single platform: Working with these innovative companies gives us the opportunity to help them develop cryptocurrency products that we believe to fill a gap for retail investors within the digital currency ecosystem ".
Thomas Chippas, former head of global quantitative execution of Citi, joined ErisX as CEO. Become one of the many executives of the conventional banking and financial sector to make the transition to the increasing space of cryptocurrency.
Although clearly a significant development, it is interesting to note that it did not create a bullish sentiment in the markets. If nothing else, many of the major cryptocurrencies were down slightly. Despite this, there is no doubt that this is the last of a trend we have seen in 2018. This is further highlighted by a ad Wednesday from TrueEX which will soon launch the first bitcoin exchange contract. The world of conventional investments is integrating the encryption into its service offering, making it available to a wider audience of investors, from retail to institutional investors.