The largest trader of exchange-traded funds (ETFs) in Europe has recently made a new plan – to enter the crypto world.
As the Amsterdam-based speed trader Flow Traders NV co-CEO Dennis Dijkstra told Bloomberg, his firm is expanding its trading products to exchange-traded funds (ETFs) that are based on Bitcoin and Ether.
XBT Provider, which is a Stockholm-based firm offering ETFs based on Bitcoin and Ether, also confirmed that Flow Traders NV has “dramatically increased” the volume of securities trading over the past couple of months.
As seen in Bloomberg, unlike the major US trading firms which are only offering cryptocurrency futures, Flow Traders NV is among the first companies to “disclose is buying and selling crypto notes that are listed on regulated stock exchanges.”
As Dijkstra stated in the interview:
“People underestimate crypto. It’s big, and it is to be regulated very soon. The market participants are much more professional than people think. Institutional investors are interested — we know they are because we get requests.”
On the other hand, a spokeswoman from the Dutch Authority for Financial Markets (AFM) stated the following:
“We discourage activities in cryptos both by consumers and professional license holders. By virtue of its newness and the anonymity it potentially offers, it is very prone to abuse. Given its inability to serve the promised purpose as a currency, we don’t regard it to be an asset class,”
In March this year, the finance minister of Netherlands also issued a letter to Parliament to urge for “an international approach” towards regulating cryptocurrency.
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