TD Ameritrade and Many Investors Invest in ErisX

TD Ameritrade and Many Investors Invest in ErisX

October 4, 2018 Off By Steven Anderson

Despite the high volatility and price swings in cryptocurrency, several Fintech companies are ambitiously pursuing cryptocurrency research.  The perspectives are not entirely negative.  

The Chicago Board Options Exchange is a brokerage firm worth $29 billion.  ErisX will integrate Litecoin, Bitcoin Cash, Ethereum and Bitcoin.   Several larger investment firms welcome the launch of ErisX as ErisX is expected to be launched as the first US-based futures market that is regulated.

A build-the-rally phase has historically followed a bubble burst according to the Chief Technical Officer, Balaji Srinivasan at Coinbase.

Ivan Zarasky is of the opinion that while cryptocurrency is still in its infancy, there is a lot of potential for significant disruption.  He stated that it is only a centimeter in a kilometer race.

TD Ameritrade is a stock brokerage giant.  JD Mackenzie is the managing director for the “futures and foreign exchange” division of TD Ameritrade.   In a phone interview to CNBC, McKenzie stated that “We want a fully regulated platform that provides with a capital markets feel.” He further added, “Our retail clients are looking to trade digital currency products.”

TD Ameritrade Invests in ErisX to provide their customers with investment options other than just Bitcoin.

McKenzie stated, “It can open up additional cryptocurrency products in futures and spots so that clients could potentially trade.”

Thomas Chippas, the CEO of ErisX stated that subject to regulatory approval, “ErisX will be launching spot trading during the first half of 2019.  The physically settled futures will be launched later in the year in 2019.”

The size of the investment by TD Ameritrade is not yet revealed.  A dozen other investors are joining ErisX which includes VIRT.O the Virtual Financial Inc, CBOE.N the CBOE Global Markets Inc and as well the Digital Currency Group that contributes to the funding.

Antonio Gracias is the founder managing partner at Valor Equity Partners. Antonio Gracias stated, “In order to function efficiently, the financial markets will have to demonstrate security and compliance. These are the two critical gaps in digital asset markets.” He further added, “ErisX recognized the monumental opportunity of re-imagining digital asset trading. Therefore, they’ve developed the platform to deliver a revolutionary and highly secure trading experience that will work better for increased numbers of participants.”

Douglas Cifu is the CEO of Virtu Financial  Douglas Cifu stated “Being a global liquidity provider, Virtu supports products across different asset classes,” He further added “Given the transparent market model of ErisX and the regulatory framework, it’s natural that we want to provide the liquidity to grow the digital asset Market Center.”

Each of the investors is bringing in unique expertise in the traditional financial industry and the modern Fintech industry thereby adding to the transparency in the evolving markets.

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