The approval of the spot Bitcoin exchange-traded funds (ETFs) in the United States has slashed the barrier to traditional investors taking a position in the crypto market. The securitized form of Bitcoin opens up the crypto markets to a broad range of retail as well as institutional inventors. Bitcoin even attracted the limelight at the recent Davos 2024 summit as many traditional finance leaders could not avoid the digital asset anymore.
“This is truly a watershed moment,” said Michael Higgins, the Global Head of Business Development at Hidden Road. “It’s important to remember that the US market is a very equity-centric place. Derivatives are sideshow and very difficult to access.”
“Now, you will see much greater liquidity coming into the space. Greater product development, such as options and ADR, will come into the space. Ultimately, this is a really big positive as new entrances will come in, and so will these big flows. It will require the digital industry to have more accountability and open up more accessibility.”
The mainstream acceptance of crypto is not limited to the Wall Street. For several years, Bitcoin and other cryptocurrencies remained a hot topic of discussion at the Davos summits, which attracts the attendance of global business and political leaders. This year, the topics of discussion on crypto remained around the ETFs and also stablecoins.
Higgins also participated in a panel discussion at Davos 2024 that discussed on the impact of Bitcoin ETFs on global spot crypto markets.
“You’re going to start seeing a slew of new strategies coming to the market on the back of this ETF,” Higgins told Finance Magnates. “It’s critically important that institutions have access to the two worlds of crypto and TradFi. The open question is, are they now the same? Because the CME market for Bitcoin has the largest open interest.”
📉 The open interest in # Бітін futures on CME declined by ~$1.5B following U.S. spot ETF launches.
This suggests a shift from futures to ETFs, as investors adjust strategies and hedge risks. pic.twitter.com/dSazOFzaJU
— Satoshi Club (@esatoshiclub) Січень 24, 2024
Bitcoin Is a Store of Value
Despite the promises, not all brokerages and financial services providers are comfortable with offering Bitcoin ETFs. Vanguard confirmed it will not provide its customers with any of the 11 approved Bitcoin ETFs. Several other major financial institutions also restricted access to such instruments to a limited number of clients.
“Bitcoin is a storage of value, something like gold,” said Higgins. “What’s interesting is Bitcoin is a non-carry instrument with no interest like gold. And so you don’t see gold in many of the large investment portfolios. The largest holders of gold happen to be central banks.”
“And so maybe the provocative question is: will we see central banks be the largest holders of Bitcoin?”
Donald Trump has said “As your president, I will never allow the creation of a Central Bank Digital Currency. Such a currency would give our federal government absolute control over your money.” … pic.twitter.com/x8NJlaew0F
—Bitcoin Scoop (@bitcoin_scoop) Січень 27, 2024
Higgins, who has a strong background working at forex brokerages, believes that crypto is similar to retail forex in the nascent stage as traders speculate on the prices of both instruments. However, retail forex has evolved over the years, and retail margin trading with currency pairs is heavily regulated globally.
“The traders of margin foreign exchange, CFDs of equity, indices, and commodities are natural users of Bitcoin,” said Higgins.
“Now, as the world shifts towards regulated requirements, cryptocurrencies will be transacted or brokered through the largely regulated broker-dealers. You’ll see even some of the digital exchanges becoming regulated globally.”
The Prime Brokerage Model
Hidden Road is a prime broker. The company already offers криптовалютна ліквідність through over-the-counter (OTC) prime brokerage. It additionally launched a comprehensive Synthetic Prime Brokerage solution for OTC Swaps, called маршрут 28 та partnered with Finery Markets recently to introduce an advanced OTC liquidity pool.
“We provide access to many things. But there are two main ones: access to all the liquidity trading destinations and access to financing,” Higgins highlighted. “It is the combination of those two access points that allow institutions to trade across the whole ecosystem in a capital and cost-efficient way.”
Funded in 2018, Прихована дорога has cleared a few trillions of dollars in the prime brokerage business across forex and digital assets. The number of clients on the platform almost more than doubled last year.
According to Higgins, there has been a void in the prime brokerage business since 2008. Indeed, many banks have stopped offering such services to retail brokers і навіть exited the prime brokerage business.
“We are a sell-side business like a bank but operated with buy-side capital. We have stepped into a highly regulated environment. We run a highly regulated infrastructure to service that part of the ecosystem as well as even the largest names because the largest names don’t always get in single clear their business,” said Higgins.
The Impact of Brexit
Hidden Road has offices in the United Kingdom and the Netherlands, its continental European base. The company further witnessed the changes in the UK and European markets following Brexit з перших рук.
“I think the UK and Europe are still navigating what that will look like right now,” Higgins added. “The UK is working very closely with the European Regulators. Their regulations are very similar. They haven’t diverted too much at this stage, but we’ll have to see how that can continue to play out; it’s certainly not as easy to leapfrog from the UK into Europe because they are now different regulators.”
“So I would say that the negative side is that it’s just become much more expensive for large brokered dealers to trade across it in the UK and outside of the UK in Europe. Generally, that’s a good thing because it only allows the safe, most well-capitalized entities to facilitate that. That’s a good thing to protect the end users and those investors, but for the broker-dealers themselves, it’s a lot more to navigate.”
The approval of the spot Bitcoin exchange-traded funds (ETFs) in the United States has slashed the barrier to traditional investors taking a position in the crypto market. The securitized form of Bitcoin opens up the crypto markets to a broad range of retail as well as institutional inventors. Bitcoin even attracted the limelight at the recent Davos 2024 summit as many traditional finance leaders could not avoid the digital asset anymore.
“This is truly a watershed moment,” said Michael Higgins, the Global Head of Business Development at Hidden Road. “It’s important to remember that the US market is a very equity-centric place. Derivatives are sideshow and very difficult to access.”
“Now, you will see much greater liquidity coming into the space. Greater product development, such as options and ADR, will come into the space. Ultimately, this is a really big positive as new entrances will come in, and so will these big flows. It will require the digital industry to have more accountability and open up more accessibility.”
The mainstream acceptance of crypto is not limited to the Wall Street. For several years, Bitcoin and other cryptocurrencies remained a hot topic of discussion at the Davos summits, which attracts the attendance of global business and political leaders. This year, the topics of discussion on crypto remained around the ETFs and also stablecoins.
Higgins also participated in a panel discussion at Davos 2024 that discussed on the impact of Bitcoin ETFs on global spot crypto markets.
“You’re going to start seeing a slew of new strategies coming to the market on the back of this ETF,” Higgins told Finance Magnates. “It’s critically important that institutions have access to the two worlds of crypto and TradFi. The open question is, are they now the same? Because the CME market for Bitcoin has the largest open interest.”
📉 The open interest in # Бітін futures on CME declined by ~$1.5B following U.S. spot ETF launches.
This suggests a shift from futures to ETFs, as investors adjust strategies and hedge risks. pic.twitter.com/dSazOFzaJU
— Satoshi Club (@esatoshiclub) Січень 24, 2024
Bitcoin Is a Store of Value
Despite the promises, not all brokerages and financial services providers are comfortable with offering Bitcoin ETFs. Vanguard confirmed it will not provide its customers with any of the 11 approved Bitcoin ETFs. Several other major financial institutions also restricted access to such instruments to a limited number of clients.
“Bitcoin is a storage of value, something like gold,” said Higgins. “What’s interesting is Bitcoin is a non-carry instrument with no interest like gold. And so you don’t see gold in many of the large investment portfolios. The largest holders of gold happen to be central banks.”
“And so maybe the provocative question is: will we see central banks be the largest holders of Bitcoin?”
Donald Trump has said “As your president, I will never allow the creation of a Central Bank Digital Currency. Such a currency would give our federal government absolute control over your money.” … pic.twitter.com/x8NJlaew0F
—Bitcoin Scoop (@bitcoin_scoop) Січень 27, 2024
Higgins, who has a strong background working at forex brokerages, believes that crypto is similar to retail forex in the nascent stage as traders speculate on the prices of both instruments. However, retail forex has evolved over the years, and retail margin trading with currency pairs is heavily regulated globally.
“The traders of margin foreign exchange, CFDs of equity, indices, and commodities are natural users of Bitcoin,” said Higgins.
“Now, as the world shifts towards regulated requirements, cryptocurrencies will be transacted or brokered through the largely regulated broker-dealers. You’ll see even some of the digital exchanges becoming regulated globally.”
The Prime Brokerage Model
Hidden Road is a prime broker. The company already offers криптовалютна ліквідність through over-the-counter (OTC) prime brokerage. It additionally launched a comprehensive Synthetic Prime Brokerage solution for OTC Swaps, called маршрут 28 та partnered with Finery Markets recently to introduce an advanced OTC liquidity pool.
“We provide access to many things. But there are two main ones: access to all the liquidity trading destinations and access to financing,” Higgins highlighted. “It is the combination of those two access points that allow institutions to trade across the whole ecosystem in a capital and cost-efficient way.”
Funded in 2018, Прихована дорога has cleared a few trillions of dollars in the prime brokerage business across forex and digital assets. The number of clients on the platform almost more than doubled last year.
According to Higgins, there has been a void in the prime brokerage business since 2008. Indeed, many banks have stopped offering such services to retail brokers і навіть exited the prime brokerage business.
“We are a sell-side business like a bank but operated with buy-side capital. We have stepped into a highly regulated environment. We run a highly regulated infrastructure to service that part of the ecosystem as well as even the largest names because the largest names don’t always get in single clear their business,” said Higgins.
The Impact of Brexit
Hidden Road has offices in the United Kingdom and the Netherlands, its continental European base. The company further witnessed the changes in the UK and European markets following Brexit з перших рук.
“I think the UK and Europe are still navigating what that will look like right now,” Higgins added. “The UK is working very closely with the European Regulators. Their regulations are very similar. They haven’t diverted too much at this stage, but we’ll have to see how that can continue to play out; it’s certainly not as easy to leapfrog from the UK into Europe because they are now different regulators.”
“So I would say that the negative side is that it’s just become much more expensive for large brokered dealers to trade across it in the UK and outside of the UK in Europe. Generally, that’s a good thing because it only allows the safe, most well-capitalized entities to facilitate that. That’s a good thing to protect the end users and those investors, but for the broker-dealers themselves, it’s a lot more to navigate.”
- Розповсюдження контенту та PR на основі SEO. Отримайте посилення сьогодні.
- PlatoData.Network Vertical Generative Ai. Додайте собі сили. Доступ тут.
- PlatoAiStream. Web3 Intelligence. Розширення знань. Доступ тут.
- ПлатонЕСГ. вуглець, CleanTech, Енергія, Навколишнє середовище, Сонячна, Поводження з відходами. Доступ тут.
- PlatoHealth. Розвідка про біотехнології та клінічні випробування. Доступ тут.
- джерело: https://www.financemagnates.com//executives/interview/new-strategies-will-hit-the-market-on-bitcoin-etfs-back-hidden-roads-michael-higgins/
- : має
- :є
- : ні
- $UP
- 150
- 2008
- 2018
- 2024
- 24
- 26%
- 27
- 28
- 7
- a
- абсолют
- прийняття
- доступ
- доступність
- підзвітність
- через
- доданий
- Додатково
- просунутий
- ВСІ
- дозволяти
- дозволяє
- майже
- вже
- Також
- завжди
- an
- та
- будь-який
- більше
- твердження
- затверджений
- ЕСТЬ
- навколо
- AS
- активи
- Активи
- At
- відвідуваність
- приваблюваний
- Приваблює
- уникнути
- назад
- фон
- Банк
- Банки
- банер
- бар'єр
- база
- BE
- оскільки
- ставати
- становлення
- було
- вважає,
- Великий
- Біткойн
- обидва
- широкий
- брокер
- брокерський
- брокерські
- бізнес
- розвиток бізнесу
- але
- Сторона покупки
- by
- званий
- CAN
- капітал
- центральний
- Центральний банк
- цифрова валюта центрального банку
- Центральні банки
- звичайно
- CFDs
- Зміни
- ясно
- клієнтів
- тісно
- клуб
- CME
- поєднання
- Приходити
- зручний
- майбутній
- Commodities
- компанія
- всеосяжний
- Підтверджено
- продовжувати
- контроль
- може
- створення
- крипто
- Крипто Маркет
- Криптова ринки
- cryptocurrencies
- Валюта
- валютні пари
- Клієнти
- davos
- Похідні
- напрямки
- розробка
- різний
- важкий
- цифровий
- Цифровий актив
- Цифрові активи
- цифрова валюта
- обговорювалися
- обговорення
- доларів
- Дон
- подвоєний
- легко
- екосистема
- кінець
- юридичні особи
- Навколишнє середовище
- капітал
- ETF
- біржові індексні фонди
- Європа
- Європейська
- Навіть
- еволюціонували
- обмін
- біржові
- фондові торги
- Біржі
- дорогий
- фасилітувати
- Федеральний
- Федеральний уряд
- кілька
- фінансування
- фінансові лідери
- Фінанси Магнати
- фінансовий
- Фінансові установи
- фінансові послуги
- фінансування
- з перших вуст
- Потоки
- після
- для
- іноземні
- іноземна валюта
- Форекс
- форма
- від
- засоби
- далі
- Ф'ючерси
- в цілому
- отримати
- Давати
- Глобальний
- глобальний бізнес
- Глобально
- буде
- золото
- добре
- Уряд
- великий
- траплятися
- Мати
- притулок
- голова
- сильно
- хедж
- прихований
- Виділено
- дуже
- власники
- ГАРЯЧА
- Як
- Однак
- HTTPS
- i
- Impact
- важливо
- in
- дійсно
- індекси
- промисловість
- Інфраструктура
- Інституційна
- установи
- інструмент
- інструменти
- інтерес
- цікавий
- в
- вводити
- Винахідники
- інвестиції
- Інвестори
- IT
- ЙОГО
- JPG
- просто
- Царство
- великий
- в значній мірі
- найбільших
- останній
- Минулого року
- запущений
- запуски
- Лідери
- як
- ліхтарик
- обмеженою
- ліквідності
- пул ліквідності
- ll
- подивитися
- виглядає як
- серія
- головний
- Mainstream
- основний
- багато
- Маржа
- торгівля маржами
- ринок
- ринки
- може бути
- Майкл
- момент
- гроші
- більше
- найбільш
- багато
- Імена
- зародження
- Природний
- Переміщення
- навігація
- негативний
- Нідерланди
- ніколи
- Нові
- немає
- зараз
- номер
- of
- пропонує
- Пропозиції
- офіси
- on
- ті,
- тільки
- відкрити
- відкритий інтерес
- Відкриється
- працювати
- Опції
- or
- OTC
- Інше
- наші
- з
- поза
- над
- за стійкою
- пар
- панель
- дискусія
- частина
- участь
- місце
- платформа
- plato
- Інформація про дані Платона
- PlatoData
- Play
- точок
- політичний
- басейн
- портфелі
- положення
- позитивний
- президент
- ціни
- Prime
- Основний брокерський бізнес
- Product
- розробка продукту
- обіцяє
- захист
- забезпечувати
- провайдери
- питання
- діапазон
- RE
- насправді
- останній
- нещодавно
- регулюється
- правила
- Регулятори
- залишився
- запам'ятати
- вимагати
- Вимога
- обмежений
- роздрібна торгівля
- право
- ризики
- дорога
- прогін
- s
- сейф
- Зазначений
- то ж
- Satoshi
- say
- черпати
- побачити
- бачачи
- обслуговування
- Послуги
- кілька
- зсув
- Зміни
- сторона
- аналогічний
- з
- один
- So
- рішення
- деякі
- що в сім'ї щось
- Source
- Простір
- Spot
- пляма etf
- Стабільні козини
- Стажування
- старт
- Штати
- Як і раніше
- зберігання
- зберігати
- стратегії
- вулиця
- сильний
- такі
- Запропонує
- Саміт
- саміти
- Свопи
- синтетичний
- взяття
- ніж
- Що
- Команда
- Нідерланди
- Великобританія
- Сполучене Королівство
- світ
- їх
- самі
- Там.
- Ці
- вони
- річ
- речі
- думати
- це
- У цьому році
- ті
- через
- до
- сказав
- занадто
- тема
- теми
- до
- торгувати
- Traders
- TradeFi
- торгові площі
- традиційний
- традиційні фінанси
- трильйони
- по-справжньому
- козир
- два
- нас
- Uk
- Зрештою
- United
- Об'єднане Королівство
- Сполучені Штати
- us
- користувачі
- значення
- авангард
- дуже
- Стіна
- Уолл-стріт
- шлях..
- we
- ДОБРЕ
- Що
- який
- ВООЗ
- всі
- волі
- з
- свідком
- робочий
- світ
- світі
- б
- дав би
- рік
- років
- Ти
- вашу
- зефірнет