On June 17, Bloomberg published a news report about TP ICAP. TP ICAP will begin selling bitcoin financial derivatives.
The CME’s (Chicago Mercantile Exchange) bitcoin futures will expire in June. According to the report, there are no talks of renewal. This decision will leave CME as the only existing offerer of bitcoin futures. Further stated in the news report was the confirmation that the ICAP unit already allows its players to participate in the buying and selling of the Chicago Mercantile Exchange’s BTC futures.
Aside from giving its customers permission to buy and sell, TP ICAP plans to complement the most significant cryptocurrency with non-deliverable forwards. Previously, the company’s core business had decreased, and to bounce back, TP ICAP decided on opening desks not only in the United States but as well as in Asia.
TP ICAP’s CEO, Fritz Vogels, explained the reason why the firm decided to start its venture with cash-settled financial derivatives. News in the past focused on interdealer brokers addressed that these businesses depended heavily on trade handling for banks. However, the financial crisis had significantly impacted their volumes. Last year, there had been a profit warning that cut off the market value of TP ICAP by 36% in just a single day. Fortunately, the firm was able to make a comeback, regaining about 10% of the lost profit. It was valued at 1.6 billion pounds or 2 billion in US dollars.
A part of the Bloomberg report also emphasized that interested customers must be aware of the existing AML (Anti-Money Laundering) and KYC (Know Your Client) rules and regulations before they can access bitcoin. Aside from BTC, TP ICAP is also considering altcoins and tokenized digital assets as real-world assets. According to the company’s market head of digital asset, Duncan Trenholme, TP ICAP aims to dig through whatever that is happening in the promising industry of asset class. He said that the firm’s interest is currently focused on investing in a growing market at the earliest stage possible.
Trenholme also explained that their company fully understands the risk associated with this promising technology. They are aware that the company’s current operations can be affected by other asset classes in just a blink of an eye, so staying well-informed about the latest developments and trends in the industry is a necessity.
According to TP ICAP’s official financial report last year, the firm had managed to acquire £1,763 billion or $2.219 billion in revenue.
Based on the information posted by CoinMetrics on their website, on June 14, BTC had surpassed 1 million daily active addresses. Major crypto news outlets also feasted on the headlines. JPMorgan Chase, on the other hand, published a report earlier this week which sensationalized the dramatic increase in institutional interest towards the Bitcoin industry since 2017.
After 18 months of trading operations, Cboe Global Markets is finally wrapping up its final BTC futures which leave the Chicago Mercantile Exchange as the sole regulated platform available for users.