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Dutch ETF Giant Makes Crypto Play Despite Regulator’s Disapproval

09 July 2018

Flow Traders decided to make the move into crypto following a tough 2017 that saw trading volumes in its core ETF market taking a big hit.

The Amsterdam-based speed trader has reportedly become the first company to buy and sell exchange-traded notes based on digital currencies, Bitcoin (BTC) and Ethereum (ETH) ETNs, in particular. That said, there isn't much the watchdog can do to stop a firm from trading regulated securities or derivatives on a regulated exchange. Given its inability to serve the promised objective as currency, we do not consider it an asset class. While five other speed traders are now operating in the United States of America with regard to cryptocurrency derivatives, Flow Traders NV is reported to be the first firm to disclose its trading on regulated stock exchanges.

The largest ETF firm in Europe is joining the likes of other multinationals to trade cryptocurrency products. According to XBT Provider, a Swedish crypto ETN issuer, Flow Traders has "dramatically increased" trading volumes.

"People underestimate crypto. It's big, and it is to be regulated very soon".

According to reports, Europe's largest trader of exchange-traded funds (ETF) is moving more and more into crypto investment, despite the efforts of the regulators in its country of origin to warn investors away from virtual currencies. Flow Traders hopes to leverage its pedigree as a speed trading behemoth to hedge each trade. He also said that people don't think high of the market participants, even though they are professionals.

Laurent Kssis, managing director at XBT Provider stated, "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". The difference between ETNs and ETFs is that they are an alternate option for investors and will allow better presence in the cryptocurrency trading markets. Speed traders general make most of their money in the volatile markets. However, he refused to reveal whether the underlying cryptocurrencies are also used for hedging. Now the trading platform has announced it's entering the cryptocurrency space by providing customers ethereum and bitcoin ETNs. "Institutional investors are interested - we know they are because we get requests." . Goldman Sachs is setting up a cryptocurrency trading desk. For example, Goldman Sachs Group Inc. has made a decision to set up a digital-asset trading desk. Likewise, Barclays has started providing banking services to Coinbase, the San Francisco based crypto broker.

Dutch ETF Giant Makes Crypto Play Despite Regulator’s Disapproval