German Stock Exchange Giant to Launch Crypto Trading — How it Will Affect the European Market
December 14 2018 - 7:42AM
ADVFN Crypto NewsWire
On December 12, Boerse Stuttgart, the second-biggest stock
exchange in Germany and the ninth-largest in
Europe, said in an official statement that it plans to introduce a
crypto trading platform by the second quarter of 2019.
Alexander Höptner, the CEO of Boerse Stuttgart GmbH, stated:
“With its combination of technology and banking expertise,
solarisBank is a great partner for us to offer central services
along the value chain for digital assets. solarisBank’s Blockchain
Factory supports us in taking trading in crypto currencies and
tokens to the next level and in setting new standards in
transparency and reliability.”
In the upcoming months, Boerse Stuttgart will collaborate with
solarisBank to establish an end-to-end infrastructure for
cryptocurrencies, allowing investors in the public market to trade
digital assets.
What Effect Will it Have on Europe?
Throughout the past five years, despite its lead in
infrastructure and talent, Europe has struggled to compete with
up-and-coming markets that were rapidly establishing the
infrastructure around cryptocurrencies.
Consequently, markets like Singapore, South Korea, and Japan have become the largest cryptocurrency markets
in terms of volume and the value of startups based in the three
countries, just behind the United States.
According to cryptocurrency market data provider CryptoCompare,
less than a year ago, major cryptocurrencies in the likes of
Bitcoin and Ethereum both have had most of
their daily volumes concentrated in Japan, South Korea, and the
United States.
Source: CryptoCompare
However, over the past several months, possibly influenced by
the G20’s call to regulate crypto and the open-minded
stance of a handful of European countries such as the U.K. and
France toward cryptocurrencies, the euro (EUR) trading pair has
started to account for a fair share of both Bitcoin and Ethereum’s
volumes.
The development of a cryptocurrency trading platform by Boerse
Stuttgart comes in a time during which digital asset exchanges in
Europe are starting to record decent volumes that are sufficient
compete against established markets.
Currently, apart from regulated fiat-to-crypto trading platforms
such as Bitstamp, the European market already has
several publicly-traded investment vehicles that allow accredited
individual and institutional investors to invest in.
Nasdaq Stockholm in Sweden listed a Bitcoin exchange-traded note
(ETN) in 2015, which billionaire investor Mark Cuban invested in
Bitcoin with, and Amun Crypto recently released an exchange-traded
product (ETP) that tracks the price of five major cryptocurrencies
in the market.
On November 18, the SIX Swiss Exchange gave the green light to
Amun to operate the first crypto ETP in the country.
At the time, Amun CEO and co-founder Hany Rashwan
said that the company might consider expanding to other regions in
the long-term, adding:
“We believe Switzerland to be the best jurisdiction for our base
and intend, after launching our initial products on the SIX Swiss
Exchange, to both launch additional products as well as dual-list
across additional geographies and stock exchanges.”
Growing Liquidity
The contentious Bitcoin Cash hard fork on
November 15 is generally thought to be the trigger that led the
crypto market to suffer a brutal cash.
But, with enough liquidity and volume, analysts said that the
market could have been able to absorb the event, preventing digital
assets from falling by 80 to 99 percent.
As the infrastructure around crypto strengthens with more
regulated options for investors, the liquidity of
cryptocurrencies will grow, possibly adding more stability to the
asset class.
Source:
CCN
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