Bitcoin exchange itBit has been in news for a lot of reasons and all of them positive for a while. The latest decision to launch global OTC agency trading desk is another event that has attracted the mind space of people. The New York-based Bitcoin exchange launched trading desk to offer over-the-counter trades between large investors.
The company says that the OTC desk is targeted toward clients who are interested in transactions over 100 Bitcoin. Nonetheless, this service is similar to brokerage services offered by Binary Financial or Barry Silbert’s Genesis Trading. The company informs that to commemorate the launch of OTC trading desk, it is offering $50 in Bitcoin for the first OTC trade.
Large Investors Can Make Trades Directly With Other Traders
The Bitcoin exchange informs that by using an OTC trading desk like the one introduced by itBit, large investors can make trades directly with other traders, without using an exchange. Nonetheless, it is expected to become popular as many institutional investors prefer this for various obvious reasons.
For instance, it allows the traders execute trades without affecting the exchange order books or market prices. It has come to notice that due to the low volume, high volatility nature of Bitcoin, traders who had to trade on the exchange would see the price rapidly change between when they started purchasing Bitcoin to when they finalized their large purchase.
Significant Liquidity, Same Day Settlement and other Features
A source from itBit says that benefits of the company’s new OTC trading desk include significant liquidity, same-day settlement, and no broker/trading fees. Talking about the recent developments Bobby Cho, director of trading at itBit, says that up until now, the OTC Bitcoin trading market has been operating in parallel to existing exchanges.
He was quoted saying:
With the itBit Global OTC Agency Trading Desk, our customers will be able to access a regulated OTC market through their existing itBit exchange accounts, matching OTC buyers and sellers through itBit’s global network of clients across more than 100 countries.
There are several advantages trading with itBit’s regulated OTC as the company says that though there has been a vibrant OTC Bitcoin trading market operating in parallel to the existing exchanges, itBit’s Global OTC Agency Trading Desk offers the best of both worlds, allowing clients to trade in the OTC market through their existing itBit exchange account.
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The company says that the OTC desk is targeted toward clients who are interested in transactions over 100 Bitcoin. […]