- CoinShares intends to improve digital asset dependability and transparency. As a result of its collaboration with FTX, the exchange platform will be able to provide access to institutional investors. Investors will also be able to trade the FTX ETPs on other exchanges.
- Although it is one of the first fully registered exchanges in the world, it faces intense competition from traditional stock market operators, accounting for only 2.7 percent of stock volume in March 2022, compared to 17 percent for the Nasdaq.
- Binance’s partner platform in the United States offers a limited range of cryptocurrencies and does not accept margin or futures trading. Ideally, I would like FTX to become the world’s largest source of financial transactions, SBF declared in a recent interview.
The FTX bitcoin exchange in the United States has opted to purchase a stake in IEX Group Inc in order to cooperate on technical and regulatory efforts as well as expand institutional and individual investor access to digital assets. The merger must yet be authorized by antitrust authorities. This would be IEX’s first significant foray into the world of digital asset trading since it aims to provide institutional investors with access to digital assets, as described in Michael Lewis’ book Flash Boys.
FTX’s Growth Approach Seems To Be Well
In 2012, four former Nasdaq employees (one of whom was Brad Katsuyama) decided to launch their own alternative trading platform, IEX. Katsuyama gained notoriety as the author of Flash Boys, a book that claimed the US stock market was set up to favor high-speed traders. Although it is one of the first fully registered exchanges in the world, it faces intense competition from traditional stock market operators, accounting for only 2.7 percent of stock volume in March 2022, compared to 17 percent for the Nasdaq.
By focusing on equities trading and institutional clients, the newly acquired interest will help FTX expand its position in the United States. With this investment, we’re associated with one of the most trusted and creative organizations in capital markets, said Sam Bankman-Fried (SBF), chief executive officer of FTX and FTX US, following the announcement. Binance, a global leader in cryptocurrency exchanges, has partnered with Amun AG, a well-known Swiss cryptocurrency issuance firm, to launch the Binance Smart Chain (BNB) ETP on the SIX Swiss Exchange’s regulated arm.
CoinShares And FTX Have Formed The Cooperation
As part of FTX’s US expansion, Bankman-Fried is interested in bitcoin options, swaps, and futures, focusing on the trading volume handled by rival Coinbase Global Inc., which has surpassed its nearest competitor Binance in terms of growth. Binance’s partner platform in the United States offers a limited range of cryptocurrencies and does not accept margin or futures trading. Ideally, I would like FTX to become the world’s largest source of financial transactions, SBF declared in a recent interview.
To assist bridge the gap between traditional banking and digital assets, FTX Global and CoinShares recently launched a new partnership. SOL ETP, a physically-backed exchange-traded product that will split staking rewards with investors, will be developed as part of the agreement. CoinShares intends to improve digital asset dependability and transparency. As a result of its collaboration with FTX, the exchange platform will be able to provide access to institutional investors. Investors will also be able to trade the FTX ETPs on other exchanges.
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Source: https://www.thecoinrepublic.com/2022/04/06/ftx-purchases-an-unspecified-amount-of-iex-company-stock/