Categories: Bitcoin Business

Crypto Trading Is the New Wall Street: Kraken Pro Trader

Click here to view original web page at www.ccn.com
Nelson Minier, who is the head of OTC at cryptocurrency exchange Kraken, explained to Nasdaq TradeTalks why traders are flocking to crypto. | Source: Shutterstock

By CCN Markets: The crypto market continues to attract former Wall Street traders, and now we know why. Nelson Minier, who is the head of OTC at cryptocurrency exchange Kraken, was featured on Nasdaq TradeTalks as a guest. Minier, who hails from the trading desks at firms such as JPMorgan and Credit Suisse, explained how the trading dynamic has shifted. For instance, Kraken's workforce has expanded 4x from less than 200 to more than 800. There's a reason for that.

"Wall Street ain't what it used to be. The first 15 years I was on Wall Street, it was fun. I was very fortunate, I started in the CDS market which feels a lot like crypto. Here you have a lot of financial innovation, a lot of trading...It feels very much like that, there's a lot of energy and enthusiasm about this progress and where it's going."

Source: Twitter

Another example is Morgan Stanley alum Marcus Swanepoel, who these days is at the helm of crypto startup Luno. Swanepoel told the Financial Times:

"Over the past two years we have seen evidence building that bitcoin is an uncorrelated asset class so it makes sense to add it to portfolios."

Portfolio Managers Are Drawn to Crypto

The trend is toward "more portfolio managers coming in," including what Minier describes as "mavericks and savvy hedge funds" entering the crypto space. Indeed, digital currency investment firm Grayscale Investments has seen its assets under management balloon to $2.5 billion, most of which originates from big investors including hedge funds.

"I think it's going to be one of those things in a blink that everybody is going to start chasing it," said Kraken's Minier.

With the upcoming launch of bitcoin futures exchange Bakkt, more traders could begin to feel the way that Minier does. In fact, Kraken has been experiencing an uptick in institutional demand for crypto, but he admits that "it's slow." Meanwhile, rival crypto exchange Coinbase, both of which are based in San Francisco, recently revealed that hundreds of millions of dollars in institutional capital is coming off the sidelines and into cryptocurrency weekly.

They sure can't find these types of returns in any other asset class currently, with interest rates at rock-bottom levels and the equities mimicking bond yields. Bitcoin, meanwhile, has generated returns of more than 150 percent year to date.

"I think it's still one of the most volatile assets on the planet. We just dropped from $10,800 to $10,000 in a few blinks," said Minier.

Bitcoin may never be considered a safe-haven asset, but it's risk/return profile along with the opportunity to create wealth is like nothing else the financial markets have to offer.

This article is protected by copyright laws and is owned by CCN Markets.

Gerelyn is Assistant Editor at CCN. Based in the U.S., she has also covered institutional investing on Wall Street but caught the bitcoin bug soon after. She resides 13 miles outside of New York, close enough but also far enough away to escape it all. Follower her on Twitter (@cryptogerelyn) or email gerelyn.terzo@ccn.com.

cinerama

Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Share
Published by
cinerama

Recent Posts

Everyone’s Worst Fears About EOS Are Proving True

The Takeaway: EOS is the world’s seventh-largest blockchain by market cap, with a value topping $3 billion since February 2019.… Read More

3 hours ago

Street Artist Makes $12,000 in Bitcoin Donations

A French street artist best known for painting lady liberty leading the yellow vests has stated he has received more… Read More

4 hours ago

Wave Financial Launches World-First Bitcoin Yield Fund: Wave BTC Income & Growth Digital Fund

LOS ANGELES, Sept. 19, 2019 /PRNewswire/ -- Wave Financial LLC (Wave), a leading asset management firm focused on digital assets,… Read More

4 hours ago

Nigerian man returns bitcoins worth $80,000

Keith Mali Chung returned Bitcoins worth $80,000 mistakenly transferred to him. A Nigerian man who found $80,000 dollar's worth of… Read More

4 hours ago

Bitcoin Surrenders Post Fed Rate Cut; Pullback Awaited

Bitcoin slipped below $10,000 on Thursday after the Federal Reserve cut benchmark lending rates by 25 basis points.The BTC/USD instrument… Read More

4 hours ago

Bitcoin Hashrate Hits All-time High as Price Dwindles

The benchmark metric of miners confidence in the Bitcoin network established its all-time high on Thursday.Hashrate, which reflects the processing… Read More

4 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More