European leader in high frequency trading, Flow Traders recently launched into cryptocurrencies and this novelty seems to be of interest to a large number of investors. The growing appeal of cryptocurrency exchange traded products (ETPs) should continue to push the company to the top.
Flow Traders launches into cryptocurrency
Based in Amsterdam, Flow Traders is a trading company and one of the largest liquidity providers in the world, specializing in Exchange Traded Products (ETP).
The company recently entered the cryptocurrency business and the results are very positive. Folkert Joling, managing director of Flow Traders, said the company saw a rise in revenue at the end of last year. This increase would be directly linked to the arrival of ETPs on cryptocurrencies within their activity.
According to an interview with The Block , Flow Traders would have traded in 2020 more than 1,800 billion dollars with its ETPs. Specifically in the last quarter of 2020, the company would have traded $ 500 million through its cryptocurrency ETPs and more than $ 100 million through tenders.
The crypto ETP market has barely emerged from the shadows, but Flow Traders seems to have found the right time to look into the matter.
Until then specializing in traditional finance trading, Flow Traders is one of its many companies to have become aware of the issues related to the cryptocurrency market . This trend could well continue to evolve and attract more trading firms who would like to adapt to this increasingly promising sector.
A booming market
The current great popularity of cryptocurrencies may well have influenced the ETP market linked to them. The sudden rise in the price of bitcoin (BTC) would also be closely linked to institutions according to Michael Lie, head of digital assets at Flow Traders.
“The ETP [exchange traded products] and ETF [exchange traded funds] market is undoubtedly a strong entry platform for institutions. Many institutions still do not, or cannot, obtain direct exposure to the underlying spot market. This may be due to compliance, credit, or operational reasons, such as how to maintain assets. Securities like ETFs and ETPs remove a lot of these barriers, ” he added.
ETFs and ETPs would therefore bring many benefits to investors and their success should continue to take the company to new heights.
Since Flow Traders opened up to cryptocurrencies, the company plans to strengthen its team to meet the needs of its clients and better adapt to the current market.