Cryptocurrencies are Down 90%, but NASDAQ and Fidelity are Investing in New Cryptocurrency Exchange
Bulls are struggling to repel the negative trend that has written off billions of dollars from cryptocurrency markets in the past 11 months. Bitcoin is down almost 80% from all-time high while altcoins plunged close to 90% since they had hit an all-time high at the beginning of this year.
Amidst this situation, prominent institutions and the world’s renowned exchanges are seeking to play their role in cryptocurrency markets. NASDAQ and Fidelity have invested in the new round of fundraising from crypto exchange ErisX, according to media reports.
Reuters reported that ErisX raised $27.5 million in a new round of fundraising. According to the media report, Nasdaq has confirmed its investments in crypto exchange. Experts say the entrance of big names like NASDAQ would really help in building investors confidence.
“With increasing financial support from leading-edge firms, ErisX stands to provide the most robust, secure and regulated digital asset offering available to both institutional and individual participants. Closing this second round of funding enables us to continue building our modern platform and expand our team,” said Chief Executive Officer Thomas Chippas.
The management of ErisX plans to offer crypto services and products according to the directions of the SEC. The platform is planning to launch spot contracts in the second quarter of next year while futures contracts are likely to start in the second half of fiscal 2018.
“With increasing financial support from leading-edge firms, ErisX stands to provide the most robust, secure and regulated digital asset offering available to both institutional and individual participants,” Chippas added.
Cryptocurrency Markets Are Struggling to Reverse the Bearish Trend
Bitcoin’s price plunged to the lowest level of this year in November; the BTC price has continued to trade around the $4,000 level over the last two weeks. Altcoins, however, are experiencing more significant losses. Ripple, Ethereum, and the rest of the top 10 coins have lost almost 90% of their value compared to their all-time high.
The interest of institutions and hedge funds in cryptocurrency markets is a positive sign for long-term future fundamentals of cryptocurrency markets. The launch of a regulated exchange would also add to retail and Wall Street investors’ confidence. Analysts say the new platform is a significant step in continuing the convergence of digital and traditional asset classes in global institutional financial services.
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