SBI is Launching Crypto Derivatives Market
August 1, 2018 3:10 pm
SBI group is contributing to the cryptocurrency market with another notable venture. It has set its concern towards the emergence of a cryptocurrency derivatives trading market. If this move becomes successful, it will welcome the development of virtual currency enthusiasts who want greater liquidity and different trading options.
SBI is Covering the Way for Digital Currency Based Derivatives Market
Recently, SBI Crypto Investment has purchased a 12 percent stake in clear markets which offer service such as electronic trading. The information about the deal haven’t been revealed yet, but the report says the deal was cracked at $9 million.
The clear markets which are based in Charlotte, North Carolina in the United States, deals with developing and operating electronic marketplaces as well as trading technologies. SBI Crypto is aiming to create a derivatives trading platform which will attract institutional investors into the market.
Institutional Investors don’t like Price Volatility
It is a fact that virtual currencies are one of the most interesting asset classes in the currency market. Although, their volatility works as a particular obstacle against widespread adoption.
With the universal wild price swings in the market, the creation of a cryptocurrency-based derivatives market seems to be a given. Thus, such a trading platform would remain undeveloped by leaving not enough avenues for big-money investors to hedge their risk. Nevertheless, SBI in tandem with Clear Markets might be able to build a platform while enables family offices, hedge funds, and other big-time investors to trade virtual currency instruments comfortably.