Crypto news

What makes Susquehanna International Group to invest quietly in Crypto assets?

There may be any number of views on cryptocurrency and the clamor on bitcoin, which is a leading coin in value table, among the financial institutions. However, Susquehanna International Group (SIG) is not worried about the pessimism expressed by either Warren Buffett or Jamie Dimon of JPMorgan. As a result, the company is making investments in the crypto assets quietly through its operations included other financial instruments too like stocks or exchange-traded funds or options. The company might obviously think that the virtual currency provides a wider allocation of their funds.

No Stranger

According to btcmanager.com report, the company is already engaged in bitcoin trading. On top of this, the company disclosed that since 2015, it has a separate desk known as digital asset desk to take care of the operations of virtual currency. This apart, the desk is also credited for conducting millions of dollars of private deals of digital coins. The company appears to be in the advanced stage of its footprint in the space since it is planning to extend its virtual currency offerings to more than 500 clients around the world.

Earlier, there were reports that suggested that Barclays and Goldman Sachs Group were planning to provide cryptocurrency trading desk to their clients. However, it was subject to the sufficient interest from its customers. These two companies might have probably been waiting for the regulators to come out with their final regulations so that they could plan. That also suggested that there was no unanimity among the financial services provider on the question of launching trade desk for digital coins. That is primarily because only recently JPMorgan CEO, Jamie Dimon, advised traders to be “beware” of virtual currencies and bitcoin in particular.

Bitcoin was shunned once in the past, and the digital coin is shaking up every segment, be it trading institutions or regulators or banks or governments. Obviously, traders were lured by the surge in prices of bitcoin over a period of time. The virtual currency has witnessed 21,900 percent increase in value since 2015.

Though Goldman Sachs is planning to launch its own bitcoin trading desk, Susquehanna is already in the game. Therefore, the company is not worried about the new entrant since its trading desk is backed up with a lot more money. The early entrants stand to gain in the space that is gaining traction despite initial hiccups.

Speculative Vehicle

The volatility in the prices of bitcoin did attract traders and investors as they are hoping to make massive profits in the process. However, there are also supporters who are not keen on the move. That is because they consider the peer-to-peer payment model as a speculative vehicle.

Susquehanna head for cryptocurrencies, Bart Smith, said, “The firm believes that Bitcoin and other cryptocurrencies inspired by it are likely to have a wide array of uses, but for now, he said, Bitcoin’s best bet is to challenge gold as a scarce commodity that can be moved around more easily.” In any case, space is set to attract more players.

About the author

Andri Triyanto

Andri has worked as a research analyst with a big equity analysis company. His perspective of looking at the market is unique. He senses an opportunity when it’s near. He stays well updated with the market happenings.

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