Gain Capital Holdings Inc (NYSE: GCAP), a small-cap global leader in online trading, said Monday it will start offering clients the ability to trade bitcoin in select markets.
What You Need To Know
Gain Capital launched a bitcoin trading platform in Australia and Singapore on the Company’s City Index branded service, which is regulated by the Australian Securities and Investments Commission (ASIC) and the Monetary Authority of Singapore (MAS).
Clients will be able to trade the value of bitcoin through the company’s “highly-regulated, trusted broker, without the need to set up a digital wallet to take delivery of and store tokens,” the press release said. Currently, investors can trade bitcoin as an over-the-counter derivative or as a future, both of which gives investors exposure to the movement of bitcoin without owning the underlying asset.
Why It’s Important
“For those who want exposure to Bitcoin, trading the cryptocurrency as a derivative with a regulated brokerage firm offers several key advantages over a Bitcoin exchange,” commented Glenn Stevens, CEO of Gain Capital. “We view these benefits as: competitive fees and margin rates, the ability to go long or short, enhanced price discovery via aggregated liquidity from multiple Bitcoin market makers and exchanges, and fast trade execution.”
Gain Capital plans to finalize the rollout of its bitcoin trading platform in the coming months and hopes to introduce bitcoin trading to customers in other markets across Asia and in the U.S. Ethereum and other digital currencies are also expected to be offered in early 2018.
The stock was trading up about 2.7 percent at $9.98 Monday morning.