ICE’s new trading platform would allow investors with deep pockets to buy and hold Bitcoin. This is not the first time that ICE has made a foray into the crypto market. They recently launched a feed on the crypto market back in March.
This move on ICE’s part has been confirmed by separate emails and documents, as well as four anonymous resources. The move is another example of a Wall Street firm that has plans to dive into the cryptocurrency market.
NYSE is the second Wall Street giant making moves in the crypto market in recent months, as news of Goldman Sachs work on a trading desk was reported earlier this month. There have also been a number of smaller trading firms that have been trading in crypto. These smaller but high-frequency trading firms include DRW and Jump Trading.
The report of ICE venturing into the cryptocurrency industry is not just limited to bitcoin trading. The report indicates that the exchange operator is looking into swaps, which is another financial instrument used in the Bitcoin market. Swap contracts are a lot more complicated than a normal trade. Reports indicate that ICE wants to do one-day settled swaps so that they can be regulated under the Commodity Futures Trading Commission.
ICE Not Confirming Or Denying Crypto Venture
However, these plans are still in the exploratory phase and only time will tell how things work out. An ICE spokesperson declined to comment or confirm on any of their crypto projects.
CME Group and CBOE Global Markets who are ICE’s competitors in the exchange market, have entered into the crypto market feet-first via their Bitcoin futures offerings. ICE has opted to take a more careful approach, focusing on data and adding transparency to its dealings through its data-feed product.
Nasdaq has already entered into a partnership with Gemini, a crypto-exchange. The stock market further hopes to launch a futures market for cryptocurrencies. Nasdaq CEO Adena Friedman is also very supportive of the crypto push, even announcing that the firm could launch a crypto exchange in the near future.
However, ICE may get ahead of Nasdaq if it follows through with its plans. It may end up being the first established equities exchange operator to launch a crypto exchange in the US. Such a move would give it a head start over all the other crypto venues since the NYSE has a very mature market structure.