Bittrex Opens OTC Trading Desk For Bitcoin And Over 200 Other Crypto Assets
Bittrex has joined a growing list of major cryptocurrency exchanges that have launched an over-the-counter (OTC) trading desk.
The U.S.-based crypto exchange announced it had opened its OTC trading platform on Monday, January 14. Bittrex becomes the latest among a host of top crypto exchanges that have swung into the OTC market.
The new offering is available for approved customers, who can now trade in the major digital assets on the exchange, including Bitcoin (BTC), Ripple (XRP), Litecoin (LTC), and Ethereum (ETH).
On top of this, customers will have access to almost 200 tokens offered on the exchange’s standard platform.
Qualified customers can buy or sell crypto assets from the exchange by making both crypto deposits and USD wire transfers.
The platform then processes the customer’s wire transfer or cryptocurrency deposit, before sending the purchased crypto asset to the customer’s existing Bittrex account.
According to the Bittrex statement, customers enjoy reduced price risks as well as the rapid execution of trades.
The OTC desk offers users a guaranteed pricing structure for large trades, which the trading platform has said will be of $250,000 or more.
Bittrex CEO Bill Shihara lauded their launch of the desk as a “game-changing trading option” in the adoption of crypto and blockchain technology.
He added that the service would provide customers “with price certainty and a fast and easy way to trade large blocks of digital assets.”
OTC trading has gained increased popularity over the years, with a growing number of institutional investors using the service to execute large-volume trades.
The idea of an OTC trading desk is pretty simple: it helps high-value institutional investors avoid trading directly on exchanges.
To help these investors complete large block trades, exchanges or brokers provide quoted prices for large-volume trades which benefit from fast settlement times and lower fees. The desks thus shield the clients from potential effects that trading on exchanges may have on price points.
A number of U.S.-based exchanges have launched or are in the process of rolling out this service. Bitfinex began offering OTC services in 2016. Others are Poloniex and Coinbase, with the latter having launched its OTC desk last November.
Coinbase currently offers its service to its users on Coinbase Prime and is reportedly looking to integrate the service with its Custody solution.
Financial technology firm Circle also has an OTC platform dubbed Circle Trade that is backed by Goldman Sachs. The high-volume platform moves about $2 billion per month, which explains the $24 billion in trades recorded last year.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.