FX Choice has sent an email to clients informing them that they are not certain at the moment when Bitcoin CFDs will return to their trading platforms.
FX Choice, like many other brokers, began offering Bitcoin CFDs in an effort to satisfy client demand for the virtual coin. The reasons for the broker halting BTC/USD trading was not specified. However, the firm did acknowledge that it is “working hard to bring it back.”
The rush of global investors to acquire a piece of the cryptocurrency pie has led many brokers to add Bitcoin and other cryptocurrencies to their lists of tradeable assets. However, the strong bullish trend incurred by most coins have created risk management issues that have hindered the ability of many companies to sustain the digital currency long term. As a result, some brokerages stopped offering Bitcoin CFDs until further notice.
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The acclimation to the new crypto norm has been a difficult adjustment for many CFD providers. These companies appear to have attempted to meet demand and to stay up to date with global financial trends. While the suspension of crypto CFDs can frustrate clients, it is imperative that brokers properly adjust to high one-sided exposures that have engulfed the market.
It is noteworthy that some brokerages that had previously stopped their Bitcoin CFD offerings, have already relaunched the product in better fashion.
As long as the demand for cryptocurrencies continues to soar at an alarming pace, as has been the case for the past few months, brokerages will continue to add new products and features that accommodate those needs. With an influx of new funds flooding the market on a daily basis, and the industry’s market cap continuing to rise, it appears that the crypto CFD trend will remain strong, despite hurdles that have hindered its progress in recent months.