Retail brokerage TD Ameritrade Holding Corp has announced it will be investing in a new cryptocurrency exchange known as ErisX to offer its clients cryptocurrency options other than bitcoin. This is further proof that cryptocurrencies are edging their way deeper into mainstream territory.
Steve Quirk – executive vice-president of trading & education at TD Ameritrade – explained in a statement:
“Our retail clients are looking to access and trade digital currency products in the same way they do with traditional capital markets – through a legitimate, regulated and transparent exchange. That’s precisely why we chose to invest in ErisX – to make digital currency products more accessible to retail clients.”
Crypto – It’s Becoming an Everyday Thing
It’s getting harder to blur the lines between traditional financial investments and cryptocurrencies. Many hedge funds are now bitcoin or cryptocurrency-based, with nearly 100 new ventures opening their doors for business this year alone.
Additionally, we’ve seen the introduction of both bitcoin and Ethereum-based futures contracts, and the Securities and Exchange Commission (SEC) has entered the long and arduous road of examining a bitcoin ETF proposal submitted by the VanEck SolidX Bitcoin Trust. This is the company’s third attempt to get such an ETF approved, and the first time where their application is being taken seriously.
The Bitcoin ETF – Will It Happen?
While the decision regarding whether to approve the ETF or not was originally set for September 30, the organization has announced that things will be postponed until late December, so they can garner further information and data from industry professionals. This is good news in the sense that the SEC is taking the time to fully understand the situation. They are giving it plenty of thought and aren’t saying “no” outright. Many analysts believe that out of all the bitcoin ETF proposals, the VanEck SolidX bitcoin ETF has the highest chance for approval.
Other ETFs involve more mainstream assets such as copper, so the fact that the organization is giving it this much time is a huge step in the right direction.
A Whole New Direction
Managing director of futures and forex at TD Ameritrade JB Mackenzie comments:
“As a strategic investor in the initiative, we look forward to working with the team at ErisX as they develop and launch digital currency products designed to fulfill the needs of retail investors. ErisX’s plan is to offer traders access to cryptocurrency spot contracts, as well as futures contracts on a single exchange. This could open up additional cryptocurrency products on the future and spot side that our clients could potentially trade.”
How Each Company Operates
ErisX says it plans to offer spot trading to its customers by early 2019 granted it earns the appropriate regulatory approval. At press time, the amount of funds TD Ameritrade is investing in ErisX has not been revealed, though it joins many other investors – including Virtu Financial Inc, the Digital Currency Group and CBOE Global Markets Inc. – in contributing to the current funding round.
CEO of ErisX Thomas Chippas explains:
“TD Ameritrade is an innovative, forward-thinking firm, and we are thrilled to join with them to deliver their clients access to the secure and transparent ErisX digital asset market.”
Founded over 40 years ago in 1975, TD Ameritrade provides both education and investing services to more than 10 million registered clients and holds more than $1.2 trillion in assets. It also offers custodial services to more than 6,000 separate accounts. The company executes nearly 800,000 trades each day and boasts a long history of innovation in the financial space. The company boasts over 10,000 employees, and often provides one-on-one client care to ensure customers understand the most probable investing routes available.