E*trade Financial, an online stock brokerage, is planning on launching Crypto trading services. According to the Bloomberg report, the firm will start by supporting two digital tokens with more tokens to be added on in the near future.
E*Trade Positioning Itself To Offer Crypto Trading Services
According to the report, the firm will be starting with Bitcoin (BTC) and Ethereum (ETH). Other Cryptocurrencies are to be added on in the future. If this does happen, E*Trade will become among the first major securities brokerage firms to support Crypto trading. Among the largest brokerage firms in the Crypto space is Coinbase which has managed to secure the top spot as the place to go for Crypto transactions. The Crypto exchange was valued at $8 billion last year, with a projected sales valuation of up to $1.3 billion.
Nathaniel Popper, a New York Times Reporter, sent out a Tweet saying that the brokerage firm is in the process of finalizing the holding of the Crypto by a third party. The entrance of E*Trade Financial into the Crypto space could act to promote the adoption of Crypto among wary investors. The brokerage firm which was founded in 1982 boasts of more than 4 million customers. It is also listed by Nasdaq.
In 2018, the firm launched Bitcoin futures trading from CME Group.
More Brokerage Firms Getting Into The Crypto Trading Space
If the current trends are anything to go by, E*Trade is going through a profitable phase at the moment. In the last quarter of 2918, the firm registered a 17% increase in its profits. According to the Wall Street Journal, the company also had a new net brokerage accounts numbering up to 135,000.
E*Trade Financial is not the only major brokerage firm to get into the Crypto trading space in the US market. Robinhood has also come into the fold, launching Crypto trading services recently. The company launched its Crypto trading services in February last year at a time when the market was bracing itself for tough times. Regardless of the Crypto environment at the time, there was a large number of traders trooping to the platform, attracted by its business model which is commission free. This boosted the company’s valuation to $5.6 billion.
The company has also been issued with a BitLicense by New York regulatorsa allowing it offer its Crypto trading services in the state. According to a recent report by The Block , TD AmeiTrade is also collaborating with ErisX to launch spot trading services for Crypto. The brokerage company based in Omaha boasts up to 11 million users on its platform.
Positive Outlook On The Crypto Space
Analysts have come out to say that Cryptocurrencies offer institutional investors a sound long term investment opportunity. Cambridge Associates has stated that challenges facing the sector notwithstanding, it of the belief that the Crypto space is worth exploring for long term investments. The firm, a consultancy firm for pension and endowment, added that even though these investments have a high risk factor some ould upend the digital world.