Posted on

‘Secretive’ Wall Street Trading Firm Jane Street Capital Starts Trading Bitcoin

Major Wall Street trading firm Jane Street Capital, which traded $5.6 trillion across products that include Exchange-traded funds (ETFs), Equities, Futures, Options, Bonds, and Commodities last year, has recently jumped on the cryptocurrency bandwagon. The ‘secretive’ firm notably revealed to Business Insider it is now trading bitcoin.

In a statement, the company confirmed that it trades over 56,000 products worldwide across a wide variety of asset classes, and that bitcoin is now one of those products. The trading firm has over 600 employees, and facilitates $13 billion in equity trading volumes on a daily basis.

It was founded in 2000, but reportedly only recently entered the cryptocurrency trading market. It’s unclear how exactly Jane Street Capital is trading bitcoin, but it is likely betting on fiat currency settled futures, such as those offered by the Chicago Board Options of Exchange (Cboe) or the Chicago Mercantile Exchange (CME).

Seemingly suggesting they’d trade bitcoin ETFs or cash settled ethereum futures if the options were available, the firm stated:

“Jane Street has always taken a considered approach to trading opportunities and will continue to do so. As more cryptocurrency products emerge, we expect to be involved.”

Other trading firms that joined the cryptocurrency ecosystem last year include DV trading, which specializes in futures and has been fined for “wash trading,” Virtu Financial, a market maker that trades over 19,000 securities, and Jump Trading, which has about 500 employees.

All of these firms started trading bitcoin at about the same time the bitcoin futures market launched, according to reports. The firms were dawn in because they make more money in volatile markets, and the common 20 percent swings in crypto markets attracted them.

Arbitrage opportunities are also ripe in the cryptocurrency ecosystem. These can look particularly mouth-watering for various traders as one cryptocurrency can have drastically different prices in two exchanges. This makes buying low and selling high extremely easy.

Arbitrage is so present in the ecosystem, that the Cryptopia exchange even has a page dedicated to it. Toby Allen, of trading firm Akuna Capital, told Business Insider:

“There is sometimes 10% exchange arbitrage. As a trader it is such an amazingly fun space to be in compared to traditional assets because of the spreads and technology gaps.”

Posted on

Bittrex to Remove 82 De-Listed Token Wallets This Month

One of the biggest cryptocurrency exchanges out there, Bittrex, recently announced it’s going to remove 82 de-listed token wallets later this month to ensure its users have access to cryptocurrencies that meet its strict listing criteria. Some of the tokens being delist have low liquidity, while others reportedly don’t have a functioning blockchain.

The US-based exchange recently announced the move, while warning the tokens will be removed from its platform on March 30. This means users need to withdraw their tokens by then, as the coins won’t be redeemable after they’re removed.

Bittrex further noted that tokens with broken wallets or blockchains won’t allow their users to withdraw, as the coins themselves aren’t working. Most of these cryptocurrencies, including CRBIT and CRYPT, are seemingly not even listed on CoinMarketCap.

Justifying its move, Bittrex’s announcement reads:

“Occasionally, there are circumstances that lead Bittrex to remove a coin’s wallet or market from the Bittrex Exchange. These actions are taken to ensure customers have access to digital tokens that continue to meet our strict coin listing criteria and have a properly functioning blockchain and wallet.”

Bittrex was once one of the largest cryptocurrency exchanges. Various investigations found users were running pump and dump schemes on its platform. These, coupled with other issues, helped the exchange’s trading volume tank from over $1 billion a day to $172 million at press time.

Wash trading and price manipulation are somewhat common in the cryptocurrency ecosystem, especially when it comes to low-volume cryptocurrency pairs. As covered by Ethereum World News, Bittrex revealed in November that it would crack down on these schemes.

Being based in the US, the exchange has to register with the Securities and Exchange Commission (SEC) before processing trades involving tokens. The regulator recently ordered cryptocurrency exchanges to either de-list initial coin offering (ICO) tokens, or register with it.

Often, cryptocurrency traders use other exchanges to find these relatively unknown tokens. These include decentralized exchanges like EtherDelta, or Christchurch-based Cryptopia. These are, however, seen as risky investments due to their lack of liquidity and potential lack of development.