Exclusive FNG interview… Tom Higgins, CEO of Gold-i, is known in our industry as an early adopter of digital assets. Here he talks to FNG about why the SEC’s approval of Bitcoin ETFs creates such a big opportunity for brokers.
FNG: Is SEC Approval of Bitcoin ETFs a Game Changer?
Someone: In crypto or, digital asset as trad fi calls it, this space is huge news. It means that institutions, with trillions of dollars at their disposal, can now play in this market. It will pave the way for a seismic shift in crypto/digital asset uptake.
Traditionally, derivatives such as futures and options end up being significantly larger than the underlying market, often 10-100 times larger. Derivatives trading then actually drives prices and volumes in the underlying market, not the other way around. That’s why this latest development – the SEC’s approval of 11 Bitcoin ETFs – is SO important for Bitcoin and other major currencies. Volumes will increase on the spot and in the Bitcoin perp/CFD markets when the ETFs are released in the next week or so, which will bring very interesting opportunities for all market participants.
As one of the key technology players in the Crypto/Digital Asset institutional liquidity market, we have been eagerly awaiting this exciting announcement.
FNG: How can Gold-i support customers who want to get involved in the crypto space?
Someone: Our MatrixNET technology, which facilitates the pooling and distribution of FX, CFD and crypto liquidity, was developed with the expected growth in crypto market growth in mind. It is an institutional solution, allowing brokers to quickly and easily add crypto trading to their FX platform. It also caters to native crypto clients, who can reap the benefits of MatrixNET by accessing the advanced functionality that the institutional FX world has come to expect.
Importantly, our MatrixNET platform is integrated with multiple Crypto Market Makers and Exchanges, enabling narrow spreads, deep liquidity and low latency. This powerful technology is fully integrated with leading crypto brokers, providing FIAT and digital asset settlement, regulatory compliance and institutional custody.
MatrixNET can be hosted by Gold-i and deployed in large global data centers, or it can be hosted on in-house infrastructure. Our support team is available 24/7, which is essential for customers trading digital assets.
We have a video on our website giving more details about MatrixNET and we would welcome the opportunity to speak further with brokers about how we can support them if they wish to enter the digital asset space or enhance their current offering.
FNG: What can we expect to see next in the crypto market?
Someone: The crypto market is still maturing. Eventually, cryptos will become just another asset class, with the robust trading infrastructure and regulatory controls we’re used to seeing with FX. For now, we have to let the impact of the SEC announcement play out. It will be interesting to see the negative effect this has on other jurisdictions.
We know that parts of MiCA (Markets in Crypto-Assets Regulation) will come into effect this year as well, which will also give further credibility to the market. Without a doubt, 2024 will be remembered as the year crypto grew up!