Asian Demand High for Bitcoin Futures as Per Trading Legend Don Wilson
Founder of high-speed trading firm DRW, Don Wilson, said that bitcoin derivatives trading in Asia hours is almost equal to the volume he has observed in the U.S. He says this is an anomaly when compared to other financial instruments.
At the CoinDesk Consensus Singapore 2018 conference with Quartz's John Detrixhe, Wilson discussed his observations on cryptocurrency trading trends and his view on the future for the technology, in a fireside chat.
Giving reference to the bitcoin futures trading data on U.S. exchanges made available by CBOE and CME, Wilson suggested that there may be demand for similar trading tools in Asia.
He told attendees that if they look at the bitcoin futures data from CME and CBOE, volume in Asia hours is almost the same with the U.S
He told attendees that if they look at the bitcoin futures data from CME and CBOE, volume in Asia hours is almost the same with the U.S. On the other hand, in foreign exchange, even for the Japanese yen-dollar trading, volume in Asia is significantly lower.
DRW is among the earliest institutions that jumped into cryptocurrency trading. At a time when others such as JP Morgan and Goldman Sachs have yet to officially roll out similar services, it launched Cumberland, an over-the-counter crypto trading desk in 2014. Wilson said that it is rooted in his belief that crypto's decentralization feature, explaining the initial idea of DRW to start a crypto trading desk. He commented that there's the argument about bitcoin as a store of value. But, more engrossing to him, is the utility of bitcoin. According to him, the ability of transfer values without trust in the system is hugely disruptive.
Cumberland had traded more than $20 billion worth of bitcoin, ether and other virtual currencies since 2016
According to the Wall Street Journal report last year, Cumberland had traded more than $20 billion worth of bitcoin, ether and other virtual currencies since 2016.
He further added that custody solution could be one major hurdle at the moment for a wider institution adoption of cryptocurrency and digital assets trading.
Wilson also commented on the recent report by the New York Office of the Attorney General, according to which the findings were released by the regulator indicating that several cryptocurrency exchanges may be involved in the violation of state laws and market manipulation.
Wilson agreed to the majority of the arguments made by the regulator. According to Wilson, the lack of clarity from regulators about rules is a significant issue in this industry. He commented that such unpredictability might drive away disruptive projects in the space to other jurisdictions with clearer guidelines such as Singapore and Switzerland.