The competition to bring institutional services to the Bitcoin ecosystem is heating up again. LedgerX today announced a partnership with Ancoa. Ancoa, a firm providing real-time analytics to exchanges and other market players, will aid LedgerX in maintain the integrity of it’s trading platform. Ancoa’s suite of tools specialize in rooting out manipulative market participants and behaviours that undermine the quality of a trading environment. LedgerX, a New York-based exchange, is currently in the process of going through the regulatory approval process administered by the the U.S. Commodity Futures Trading Commission (CFTC). LedgerX boasts a very impressive team of former Wall Street professionals and government financial regulators such as Jim Newsome, former Chairman of the CFTC and former CEO of NYMEX; Tom Lewis, former CEO of Ameritrade and former CEO of Green Exchange. If LedgerX receives the regulatory “green” light, it will become the first regulated Bitcoin options derivative marketplace on American soil. Bitcoin derivatives are currently not available to institutions such as pension funds, but if LedgerX opens for business: Bitcoin can be off to a great start in 2015. Paul Chou, Chief Executive Officer of LedgerX said, “Together with our experienced team, the Ancoa platform will provide the surveillance needed to ensure a fair and orderly bitcoin options marketplace.”
LedgerX is not the only firm in the race to provide institutions with access to the Bitcoin marketplace. The Bitcoin Investment Trust (BIT) recently made headlines, when it received approval from the Financial Industry Regulatory Authority, Inc. (FINRA). The BIT is the first publicly traded Bitcoin fund in the United States. The BIT has been assigned the ticker symbol GBTC by FINRA, but there is still no news on when actual trading will commence. The BIT fund will be available for trading on the OTC Markets Group exchange. The fund is not classified as a standard exchange-traded fund (ETF), and therefore will not be available to some investors and institutions due to legal restrictions.
The Winklevoss Bitcoin (ETF) is currently undergoing an arduous SEC approval process and will be open to all classes of investors and institutions in the US, if approved. The recent flutter of news reports surrounding Barry Silbert’s BIT, and the LedgerX announcement, have made their impact on Bitcoin’s spot exchange rate. Prior to both announcements, Bitcoin was trading at $240 to the dollar; in the space of several hours after the news reports, prices on some exchanges such as Bitfinex, were as high as $260. Bitcoin investors and speculators, have been patiently waiting for the digital currency to make it’s way into the open arms of Wall Street investment goliaths. That day is rapidly approaching now.
Image Sources: http://www.bitcointrust.co , https://ledgerx.com