Report: Every Fifth financial institution considering cryptocurrency trading in 2018. According to a Thomson Reuters poll, one-fifth of financial companies are considering trading cryptocurrency for the next 3-12 months.
Every Fifth financial institution considering cryptocurrency trading
The survey conducted among 400 clients on all Thomson Reuters trading solutions, including Eikon, REDI and its FX platform. And he showed that approximately
20% OF PARTICIPANTS SAID THAT THEY ARE considering trading cryptocurrency for the next 3-12 months
Of these, 70% said they plan to do it within the next 3-6 months, and another 22% plan to trade within the next 6-12 months.
The trend will develop
Interest in cryptocurrency grew in the second half of 2017 when bitcoin’s price increased. The hype reached a climax when CME and CBOE launched bitcoin futures in December.
According to research firm Fintech Autonomous Next, there are more than 200 specialized hedge funds focused on cryptocurrency. But their combined assets under management are only $ 5 billion.
Neil Penny, co-head of trading at Thomson Reuters, said: “Cryptocurrency is still a relatively small part of the trading market, but this survey indicates this
niche segment is starting to enter the mainstream of the financial services industry. This is a major change
from a year ago”. He added: “The current priority for our clients appears to be seamless access to news and data around cryptocurrencies to facilitate informed trading decisions. As a leading provider of news, data, and trading capabilities, Thomson Reuters is well-positioned to deliver solutions that address client demand in the growing cryptocurrency market.”
The arrival of significant capital is not far off
The cryptocurrency market has stalled since the beginning of the year, declining from $ 800 billion in December to about $ 400 billion as of Monday. Many cryptocurrency bulls believe that the inflow of institutional money can be an incentive that will help the market recover.
Bill Barhydt, the CEO of American Express-backed cryptocurrency startup Abra, said last month: “I talk to hedge funds, high net worth individuals, even commodity speculators. They look at the volatility in the crypto markets, and they see it as a huge opportunity.”
“Once that happens, all hell will break loose”
On Monday it was reported that Goldman Sachs hired his first employee to focus exclusively on digital currencies. This bank from Wall Street is considering creating a bitcoin trading desk.