Litecoin (LTC) is poised for a major boost by entering the futures market if the announcement by a US based brokerage firm in the retail sector; TD Ameritrade investment in in a new crypto exchange ErisX is anything to write home about. This is poised to add on to the current LTC visibility and usage in the market and a sure price catalyst.
TD Ameritrade boats of over eleven million users who have access Bitcoin futures trade on the Chicago Board Options Exchange (CBOE). Bitcoin futures were introduced in the market in December last year by both CBOE and CME Group and the entry of Litecoin and Ethereum will be a blockchain industry win.
TD Ameritrade and ErisX Market Entry
ErisX is a regulated digital currency exchange in the spot and Futures trades and its entry in the market is likely to spur more growth ad it could turn out to be the next major gateway for institutions into the crypto-space. This is a link which has been missing and is set to instill confidence to traders who are exiting the digital asset market to fiat.
During the strategic investment announcement, the mission for the collaboration between Ameritrade and ErisX has been made very clear:
“Our retail clients are seeking to access and trade digital currency products in the same way they do with traditional capital markets – through a legitimate, regulated and transparent exchange,” said Steve Quirk, executive vice president of Trading & Education at TD Ameritrade. “That’s precisely why we chose to invest in ErisX – to make digital currency products more accessible to retail clients.”
The inclusion of Litecoin and Ethereum will see their prices improve and stabilize. However, the digital assets will have to wait a little longer as ErisX is set to open trading during the first half of next year and futures to commence later.
While making the announcement, the managing director and head of futures trades at Ameritrade, J.B Mackenzie in an interview with CNBC says:
“It could open up additional cryptocurrency products on the future and spot side that our clients could potentially trade. We continue to see our retail clients seeking access to trade digital currency products. We wanted to find a platform that would be fully regulated, and something that has that capital markets feel.”
The news has brought excitement back to the market and many are watching on the sidelines to see how the listing of Litecoin and Ethereum is going to play with Bitcoin dominance in the market. Bitcoin has been on the futures trading for close to a year and has shed over 60% since getting listed.
Many investors are becoming impatient and hope the inclusion of the two to trade alongside Bitcoin will send a positive ripple effect across the crypto space. Of more concern is how to woo institutional investors to gain confidence in the market.
The listing of Bitcoin last year saw a huge increase in trading volumes across the market. A repeat of the same upsurge might be in the offing although a lot has happened in the market, many investor are waiting to see if the listing of LTC and ETH will create any meaningful hype to set pace for another boom.
Litecoin and has been struggling lately and a price boost would come in handy to salvage its past losses heading the fourth and final quarter of the year. ErisX has also been boosted by Thomas Chippas for Citi as the Chief Executive and is move from the convectional banking sector to cryptocurrency could be a blessing to the new market entrant.