FNG Exclusive Interview… Tom Higgins, CEO of Gold-i, is renowned in our industry as an early advocate of digital assets. Here he talks to FNG about why the SEC’s approval of Bitcoin ETFs creates such a great opportunity for brokers.
FNG: Is the SECs approval of Bitcoin ETFs a game changer?
Tom: In the crypto or, digital asset, as trad fi calls it, space this is huge news. It means that the institutions, with trillions of available dollars, now can play in this market. It will pave the way for a seismic shift in the uptake of cryptos/digital assets.
Traditionally, derivative products like futures and options, end up being considerably larger than the underlying market, often 10-100 times larger. The derivative trading then actually drives the prices and volumes in the underlying market, rather than the other way round. This is why this latest development – the SEC’s approval of 11 Bitcoin ETFs – is SO important for Bitcoin and other large coins. Volumes will surge in the spot and perp/CFD Bitcoin markets when the ETFs launch in the next week or so, which will bring very interesting opportunities for all involved in the market.
As one of the key technology players in the Crypto/Digital Asset institutional liquidity market, we have been eagerly waiting for this exciting announcement.
FNG: How can Gold-i support clients wanting to get involved in the crypto space?
Tom: Our MatrixNET technology, which facilitates FX, CFD, and crypto liquidity aggregation and distribution, was developed with the anticipated growth in the crypto market growth in mind. It is an institutional solution, enabling brokers to quickly and easily add crypto trading to their FX platform. It is also aimed at crypto native 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 tight spreads, deep liquidity and low latency. This robust technology is fully integrated with leading crypto prime brokers, providing FIAT and digital asset settlement, regulatory compliance and institutional custody.
MatrixNET can be hosted by Gold-i and deployed in major global data centres or can be hosted on in-house infrastructure. Our support team is available 24/7 which is key for clients trading digital assets.
We have a video on our website which provides further detail about MatrixNET and would welcome the opportunity to talk further to brokers about how we can support them if they wish to enter the digital asset space or strengthen their current offering.
FNG: What can we expect to see next in the crypto market?
Tom: The crypto market is still maturing. Eventually, cryptos will become just another asset class, with the robust trading infrastructure and regulatory controls that we are used to seeing with FX. For now, we need to let the impact of the SEC announcement play out. It will be interesting to see the knock-on effect this has on other jurisdictions.
We know that parts of MiCA (Markets in Crypto-Assets Regulation) will come into force this year too, which will also give further credibility to the market. Without a doubt, 2024 is going to be remembered as the year that crypto grew up!
