Cryptocurrencies continue to be at the forefront of the retail broking industry’s expansion. The latest news comes from GAIN Capital as the company has announced the rollout of Bitcoin trading for its Australia and Singapore-based City Index subsidiaries.
The firm has enjoyed a solid bump in share prices after it announced that it will offer the asset to its European clients. Some analysts on Seeking Alpha have upgraded their outlook for the company causing a sharp spike higher in the value of the shares of GAIN Capital.
Bitcoin trading will now be available to clients of GAIN Capital that are based in Singapore and Australia. Both branches of City Index are regulated by the local authorities, the Monetary Authority of Singapore (MAS) and the Australian Securities and Investments Commission (ASIC).
The company’s Bitcoin trading solution offers an alternative to clients that are keen to get exposure to cryptocurrencies. The leverage level on the Bitcoin contracts that GAIN Capital is offering will be contingent on the regulatory jurisdiction where the client is located.
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Clients of GAIN have the option to trade the asset via an over-the-counter (OTC) derivative or as a future. Neither offering requires customers to own the underlying asset, therefore enabling a more easily-accessible speculative vehicle.
Commenting on the news, the Chief Executive Officer of GAIN Capital, Glenn Stevens, said: “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.
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.”
Clients of GAIN Capital in Europe, Australia and Singapore can access Bitcoin trading via the City Index or FOREX.com brands. Bitcoin futures are available in the US via the firm’s brands Futures Online and Daniels Trading.
The company outlines that it is working on rolling out Ethereum trading as well as other cryptocurrencies in the early months of 2018.