Secretive High-Tech Trading Company Now Trades BTCMarch 20, 2018
A U.S global proprietary trading company, Jane Street Capital, has this week announced that it is involved in Bitcoin trading. The company, known for being one of the most secretive investment firms in Wall Street, says that if cryptos keep rising, it will even be more involved.
The trading company operates in New York, Hong Kong, and London, actively trading between USD 8 -13 billion worth of bonds, options, futures, and equities, among other investments. Its management claims that the firm executes more than 1 million trades each day. A popular New York daily recently referred to the company as being among the most secretive trading companies out there, handling a lot of trades. The daily called the firm “Coders having a Ph.D.” Jane Street specializes in a lot of arbitrage trades. The Business Insider reported that the company explained that it is currently dabbling in bitcoin trading.
In the cryptocurrency sector, arbitrage opportunities are becoming increasingly tempting to trading firms like Jane Street Capital because the spreads are usually very high on various trading platforms. Global bitcoin exchanges can at times have as high as 10 percent in arbitrage trading opportunities between trading venues. Jane Street has, however, not revealed details about how it began trading bitcoin, but it explains that if cryptocurrencies continue being hot, it will definitely continue remaining active in the industry.
“Our company trades more than 56,000 products globally. These products come from a wide range of asset classes which now include bitcoin,” an official from the company detailed this week. “Jane Street has often been taking a considered approach as regards trading opportunities, and we will continue doing so, and as more crypto products emerge, we are expecting to be more involved,” the official conveyed.
The company follows other well-known Wall Street traders
Jane Street Capital’s involvement in crypto trading follows other well-known Wall Street companies that have reportedly been trading cryptocurrencies like bitcoin or other crypto-based exchange-traded notes or futures products. At a world economic forum held in Davos this year, Goldman Blankfein said that if customers want to trade bitcoin, they will help to facilitate. “We are clearing futures in BTC for some of clients-we would rather clear them,” an official noted, adding that, “we are a prime broker; therefore, if our customers are interested in it, we’ll do it as well.”
In September 2017, Jamie Dimon pointed out that BTC traders were “stupid.” However, the company was recently caught red-handed trading bitcoin exchange-traded futures and also notes for customers. The company has further stated that it is very open to providing customers with Cboe bitcoin and CME.
However, Jane Street Capital is somewhat different from Goldman and JP Morgan in various aspects. For instance, the company employs OCaml computer programming language which helps its traders to execute trades quickly in the rapidly changing market conditions. Jane Street has even released an open-source code for the OCaml libraries. The firm is yet to reveal any details to the media about how it is actively trading cryptocurrencies.