License granted
Cryptography has been a real roller coaster ride over the past few months. But recent news from the industry could give Bitcoin & Co. a significant boost.
The US Commodity Futures Trading Commission (CFTC) has taken an important step in opening up cryptosis trading to more investors: The Bitcoin stock exchange LedgerX has been licensed to act as a state-regulated clearing bank for derivatives trading in digital currencies
Bitcoin warrants from autumn
LedgerX wants to offer warrants on Bitcoin already from the coming autumn. Investors can then bet on the price development of the world's largest crypt diet. A few months later the stock market wants to expand its offer and also offer warrants on the Bitcoin competitor Ethereum, promises LedgerX boss Paul Chou against Bloomberg.
The target group is not private investors
With the sale of warrants for cryptos, LedgerX wants to open up the door to the market for digital currencies, especially to institutional investors. In this regard, the stock market operators have, among other things, fund managers. According to Chou, demand from the institutional side is high. Asset managers such as fund managers are looking for assets that do not necessarily correlate with the stock market. The expectations of LedgerX are correspondingly high. As a result of licensing, it is now hoped that very large asset managers will enter the market.
Great name on board
Ledger has a major investor. Google Ventures, an investment arm of the Techriesen alphabet, is involved in the stock exchange. This fact and the recent decision to license by the CFTC are likely to give bitcoin trading a more serious look and bring new entrants into the market.
Bitcoin courses are reoccurring
Last week, Bitcoin increased the value of the dollar by about 16 percent, after the crypt diet had to cope with a massive slump in June. If the market for new investors is open - although in the case of LedgerX for the time being only for institutional market participants - fresh capital flows into the crypt-market. Not only market giants such as Bitcoin and Ethereum are likely to benefit from this - the courses of other digital currencies will probably also attract.