Text | Qin Xiaofeng
Editor | Lu Xiaoming
Text | Qin Xiaofeng
Editor | Lu Xiaoming
Since its birth in 2008, the blockchain has gone through more than ten years of wind and rain. There has been a lot of debate about blockchain and cryptocurrencies. Advocates say it can solve the trust problem and promote the progress of human civilization; opponents think it is a complete scam, a zero-sum game, and has no value. Now that the blockchain has passed away, and the capital winter is coming, it is even worse.
Under the cold winter, the enthusiasm of traditional institutions has never been extinguished. If you think that in this "emerging revolution", there are only natives of the blockchain world, you are very wrong. Traditional stock exchanges have never been unwilling to be lonely, and have been "silently working" on this land.
Developing in depth in the encrypted world"Financial Times"According to the recent British
"Financial Times"
Invesco, an independent investment management firm, has announced the launch of “the world’s largest blockchain ETF,” according to reports. If nothing else, the ETF started trading on the London Stock Exchange on Monday. At the same time, the Swiss stock exchange operator SIX may launch an XRP exchange-traded product (ETP) within two months to track XRP prices, etc., after the agency has launched a Bitcoin-based ETP - Amun Bitcoin (ABTC) ETP And Ethereum-based ETP - Amun Ethereum (AETH) ETP.
Take Nasdaq as an example. As the world's second largest stock exchange, it entered the blockchain in 2015 and invested in Chain.com, a blockchain technology service provider. If it is said that Nasdaq was still in a conservative state at that time and only invested in some blockchain technology; then when the cryptocurrency became popular, Nasdaq was more open.
Nasdaq
Official website, on February 25, Nasdaq officially launched BTC index (BLX) and ETH index (ELX). It is reported that the two indexes are displayed in US dollars and provide "real-time spot prices" at the price of 1 BTC and 1 ETH to accurately reflect the price of BTC and ETH. On February 26, Nasdaq added these two indices to the Global Index Service Product (GISO).
The traditional stock exchanges are like wolves with a keen sense of smell, and the blockchain is like a piece of attractive fat that emits a fragrance.With the same layout as Nasdaq in the blockchain world, there are also traditional exchanges such as the London Stock Exchange and the New York Stock Exchange.Back in 2015, when the London Stock Exchange (LSE) had become a blockchain projectHyperledgerFounding member of the LSE and contributed code to the Hyperledger project in the early days, but the London Stock Exchange has since become quite low-key;
, the London Stock Exchange announced a partnership with IBM to create a blockchain securities platform for small and medium-sized enterprises; on January 22, 2019, LSE announced a partnership with the cryptocurrency exchange AAX to provide the latter with Millennium trading technology; February 2019 On the 25th, the London Stock Exchange Group (LSEG) led the second seed expansion round of blockchain startup Nivaura, with a total financing of $20 million."Financial Times"If it is said that the first half of the LSE was still conservative and only focused on blockchain technology and corporate investment, then the blockchain ETF launched recently can be regarded as its own breakthrough. According to UK
"Financial Times"
The New York Stock Exchange (NYSE) even invested in the cryptocurrency exchange Coinbase as early as January 2015, becoming one of the investors in its C round of financing; in May of the same year, NYSE continued to launch the Bitcoin Index (NYXBT); In August 2018, Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, founded Bakkt, a cryptocurrency exchange, and launched bitcoin firm delivery futures products.
Judging from the current trend, once the cryptocurrency is compliant, traditional exchanges will launch more cryptocurrency derivatives in the next step, not limited to ETFs and futures contracts, but may also include options, warrants, etc.
secondary title
Why do traditional giants prefer blockchain and cryptocurrency?
Why are the old traditional stock exchanges entering the blockchain and cryptocurrency?
What's more, today, no one dares to look down on this field. Although the development history of blockchain and cryptocurrency is only more than ten years old, it is no longer a "gadget" that is difficult to be elegant.has said, “Although it is still in a bear market, bitcoin and other digital assets are here to stay.”
according toBloombergaccording to
World Wealth Report 2018
The data shows that enthusiasm for cryptocurrencies among high-net-worth individuals (HNWIs) around the world continues to rise, with nearly a third (29%) of millionaires surveyed being “very interested” in cryptocurrencies. Cryptocurrencies are gaining more and more attention from the mainstream, and people are starting to invest in and trade them.
As the audience of cryptocurrencies becomes wider and wider, and its value is also increasing, it is not difficult to understand that the profit-seeking nature of capital has prompted traditional stock exchanges to enter the market.
However, the giants are still cautious about entering the market, mainly involving technology, or layout in the form of investment, and then develop and launch cryptocurrency-related products. After all, cryptocurrencies have not been fully regulated for many years (until now many governments have not regulated them), while blockchain technology is not subject to this limitation.
Compliance is the most important point for traditional exchanges. If cryptocurrencies are not compliant, institutional investors such as pension funds, endowment funds, and insurance companies may be less willing to invest in this emerging asset class. Lack of regulation is the main reason why these institutions stay away from Bitcoin. As an exchange, you have to consider compliance issues. This is a realistic demand and a powerful means to provide protection for yourself and investors.
Nasdaq CEO Adena Friedman said: "Once the emerging digital currency industry is regulated, Nasdaq may become a cryptocurrency exchange in the near future."
secondary title
What is the impact of the entry of giants?
For investors, the most concerned question is: What is the impact of the entry of old exchanges into the blockchain?
Promote industry compliance first.
Compliance is a prerequisite for the entry of traditional exchanges. On the other hand, the entry of traditional stock exchanges may promote the process of cryptocurrency compliance and the introduction of related policies.
Traditional exchanges themselves have strong resources and connections, and can lobby government officials and members of Congress to change the views of regulators on cryptocurrencies. Practitioners told Odaily that some people on Wall Street have already started to promote the compliance of cryptocurrencies.In other words, when the regular army enters the field, the compliance threshold may eliminate recklessness.Take the recent
Injunction adopted by the US SEC
For example, it stipulates that “when any exchange provides services to U.S. residents, it needs to strengthen supervision through the platform and promptly close the accounts of U.S. traders who operate in violation of U.S. regulations.” BitMEX had to close U.S. user accounts under pressure from the authorities. This led to a sharp decline in transaction volume. Contrary to BitMEX, the daily trading volume of the U.S. compliant and regulated Chicago Mercantile Exchange (CME) is growing against the trend.
The different situations of BitMEX and CME, on the one hand, reflect the importance of compliance in the cryptocurrency field; but at the same time, we don’t know whether there are related company activities behind the ban.
Looking back at history, in December 2017, the Chicago Board Options Exchange (CBOE) and the Chicago Mercantile Exchange (CME) announced the launch of Bitcoin futures contracts. At that time, Bitcoin rose sharply, reaching $20,000 at one point. Both CBOE and CME are old-fashioned futures exchanges and are also regulated by the US SEC.Thomas LeeIt is believed that once the Bitcoin ETF is licensed, the expected influx of a large amount of legal currency capital into the market will not only respond quickly to its price, but also create a positive impression on Bitcoin's reputation.
Therefore, the core issue is compliance. Once compliance is met, a bull market can be expected. According to the former chief equity strategist at JP Morgan and head of research at Fundstrat Global Advisor
It is believed that once the Bitcoin ETF is licensed, the expected influx of a large amount of legal currency capital into the market will not only respond quickly to its price, but also create a positive impression on Bitcoin's reputation.
At present, the entire blockchain technology is still immature. The throughput capacity (TPS) of Bitcoin is 7 transactions per second, which is far from meeting some commercial needs (VISA is 2000 transactions per second); Only $130 billion (far less than Apple's market capitalization). Only by making the cake bigger can more people share the dividends of the blockchain, and this requires the entry of traditional financial institutions and large BAT companies.
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I am Odaily reporter Qin Xiaofeng (Pnjun0811), editor Lu Xiaoming (lohiuming), exploring the real blockchain, breaking news, communication, please add friends, please note your name, unit, position and reason.
