Bitcoin continues to gain popularity in 2017, with retail brokerages quickly warming to cryptocurrencies amidst an uptick in client demand. GAIN Capital (NYSE:GCAP) has become the latest group to launch Bitcoin trading, supporting new capabilities on its FCA regulated service, City Index.
The support of Bitcoin trading on City Index is a big move for its UK clientele who can now garner new exposure to one of the hottest tradable instruments available. At a time when foreign exchange volumes are muted with volatility somewhat lulled, cryptos have exploded in popularity.
By popular demand
This stance was echoed by GAIN Capital CEO Glenn Stevens, who commented: “Cryptocurrencies are one of the most exciting trends shaping today’s markets. We are pleased to provide our clients with the ability to trade Bitcoin through an established, regulated firm, without the need to set up a digital wallet or execute through a Bitcoin exchange.”
Per the new offering, City Index’s UK clientele will be able to trade Bitcoin either as a spread bet or as a contract-for-difference (CFD). Furthermore, this will entail access to competitive spreads, margin and financing, and the ability to take both long and short positions.
The adoption of cryptocurrency-denominated CFDs has certainly gained traction in the retail industry during H2 2017. Earlier this month, Bitcoin reached an all-time high of over $11,000, with periodic surges in valuation becoming the norm. Such an environment has proven to be widely popular amongst traders who are looking for exposure into such instruments.
Furthermore, GAIN Capital has also shored up the offering via the establishment of multiple liquidity relationships with Bitcoin exchanges. The development will help the group work with exchanges to produce a volume-weighted average price that is more transparent.
At present, Bitcoin trading will only be supported to City Index’s UK clients, though GAIN Capital has its sights already set on a global offering. Consequently, the group is eyeing a rollout to include its global client base, possibly as early as Q1 2017, while also expanding the offering to its FOREX.com customers in select markets this month.
“We are excited to expand our offering for City Index customers, who can now trade cryptocurrencies along with more than 12,000 other markets, including FX, indices, commodities, equities and rates,” explained Mr. Stevens.