Regulatory antipathy notwithstanding, there is no actual legal basis for the AFM to stop Flow Traders or any other firm from trading regulated crypto instruments on regulated exchanges, so for the time being the push by conventional investors into crypto remains unabated.
Speed trader and CEO of Flow Traders NV, Dennis Dijkstra recently reported to Bloomberg that his firm would be soon selling cryptocurrency products. He stated that the new approach has "great indirect benefits" for the development of Flow Traders NV's foreign exchange trading business. A spokes person for the AFM said, "Given bitcoin inability to serve the promised goal as a currency, we don't regard it to be an asset class".
Flow Traders continues to trade in the Bitcoin and Ethereum ETNs [COINXBT:SS and CORINTH:SS].
The only difference is that with ETFs, the trader invests in a fund that tracks the price movement of the underlying asset while for ETNs, the trader is more or less investing in a bond.
According to Sweden-based exchange XBT Provider which also offers ETNs in that country, says, the move by the Dutch exchange will now allow it prime itself up to dramatically increase securities and trading.
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"People underestimate crypto. It's big, and it is about to be regulated very soon".
According to Bloomberg, in the first quarter of 2018 Flow Traders NV traded the equivalent of $284 billion in Euros of ETFs worldwide, including the equivalent of $167 billion in Europe, making the company the largest trader on the "Old Continent". As of yet, Dijkstra has not addressed whether or not Bitcoin or Ethereum will be utilized by Flow Traders to hedge each trade.
The plan thus far for Flow Traders is to hedge ETN along with CME or CBOE in terms of futures contracts and will also lower the sluggishness due to an increase in liquidity. Digital currencies are particularly attractive because speed traders make the most money in the most volatile markets. Market participants are much more professional than people think. Now the trading platform has announced it's entering the cryptocurrency space by providing customers ethereum and bitcoin ETNs. The institutional investors are drawn, and he knows for sure since they get requests. Goldman Sachs is setting up a cryptocurrency trading desk.
"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", Kssis added. Likewise, Barclays has started providing banking services to Coinbase, the San Francisco based crypto broker.