Jump Trading, Jane Street, and GTS are the largest Wall Street companies to unveil plans to step up cryptocurrency trading — after years of speculations about their secret ventures in the highly speculative and volatile digital market.
The trading companies are now planning on a takeover of the crypto territory. And winning business from investors. Judging from their wallets, they might succeed.
These competitive and aggressive trading Wall Street companies often fight for the trading of futures markets, currency, and global equity. So, odds are, they’ll also fight for cryptocurrency market trades. And gain massive sales.
They want a piece of the crypto pie as a way to close the gap between the digital markets and asset managers keen on trading the rapidly growing crypto industry.
High-frequency traders taking over the market
According to Mina Nguyen, head of the institutional strategy at Jane Street, they began trading in crypto in late 2017. Through the experience garnered over the years, they now trade in crypto assets around the world, every day.
She adds that Jane Street is ready to support more cryptocurrency markets as institutional interest in digital assets thrives exponentially.
These top Wall Street trading companies have been at the forefront — over the last two decades — in triggering waves of change now sweeping across the world’s largest equity markets based in the US.
These high-frequency traders use the latest technology and regulatory changes to boost the efficiency of the digital markets — earning them lucrative stock margins and commissions. And making billions of dollars from the price differences for the same cryptocurrency assets but in different venues.
They now want to bring that knowledge to the crypto markets, and steer their growth as more institutional investors continue eyeing the high returns on offer.
Top companies operated under the radar
These high-frequency companies first joined the crypto market in 2017, when Bitcoin prices were scaling new heights.
However, several of the high-profiled firms remained under the radar — keeping their cryptocurrency trades silent as they amassed great market shares.
According to JPMorgan, top Wall Street firms were responsible for nearly 80% of Bitcoin prices sent to crypto exchanges.
Right now, many of the high-frequency firms are keen on trading — on behalf of institutional investors — but outside the realms of cryptocurrency exchanges. And serve as a channel for trading crypto transactions often not matched on a single venue.
That gives them an edge to compete with more experienced crypto trading firms such as Bequant, B2C2, Genesis, and other more exchanges. In short, the trading companies are taking over space and bringing the muscle to crypto.