TP ICAP completes first trades on crypto asset equities instruments

Simon Forster, co-head of TP ICAP Digital Assets.

TP ICAP, a leading provider of market infrastructure, has marked a major milestone in its digital assets business with the first trades completed on crypto asset equity instruments with Goldman Sachs.

The company traded the ETC Group Physical Bitcoin on an outright basis and against the CME Bitcoin Future in the form of an EFP (Exchange for Physical).

Liquidity was provided by crypto exchange traded products market makers DRW, Flow Traders and Jane Street.

Exchange traded products (ETPs) allow firms to gain exposure to parts of the crypto universe without investing directly. Instead, the investment is through a security that tracks the performance of various digital assets

The company said that it is actively providing liquidity to its clients across the CME bitcoin and ether futures and bitcoin options.

In addition, TP ICAP is looking to expand its product offering alongside partners including Goldman Sachs.

There has been a meaningful increase in CME Bitcoin Futures volumes following the recent approvals of the first US bitcoin futures based ETFs.

TP ICAP expects to see continued interest across crypto asset- based futures and options products and an interbank NDF (Non-deliverable forward) market developed on bitcoin, and potentially ether, throughout the course of 2022.

“We’re delighted to start providing liquidity for clients in these European crypto asset equity instruments alongside Goldman Sachs and some of the most respected market makers in the space,” said Simon Forster, co-head of TP ICAP Digital Assets.

“We look forward to adding further equity instruments and to start providing our clients with access to crypto asset ETFs out of the US in the near future.

He added “We’ve seen increasing interest in crypto assets products this year as it continues to mature and institutionalise as an asset class. We expect to see more growth and more demand for these kinds of products in 2022.”

Max Minton, APAC Head of Digital Assets at Goldman Sachs, said, “We are excited to work with firms like TP ICAP as we continue to evolve our cash-settled crypto currency capabilities at Goldman Sachs. Institutional demand continues to grow significantly in this area and this partnership will help us expand our capabilities to serve our clients.”

©Markets Media Europe 2021

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