TD Ameritrade To Introduce Crypto To 11 Million Investors

8 Oct, 2018 23:52

Earlier this week, on Wednesday, TD Ameritrade, an American brokerage firm with over $1.2 trillion worth of assets under management, announced that it had invested an undisclosed sum into ErisX, a crypto platform that has reportedly been in the works for months. According to the official announcement, ErisX, which has also been backed by DRW, Virtu Financial, and Cboe, is slated to become a fully-regulated, US-based derivative and investment vehicle exchange that will take a focus on digital assets.

Eventually, if regulators give a green light, ErisX, which is headed by former Citigroup executive Thomas Chippas, intends to unveil spot trading and physically-delivered futures support for Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. As per reports, the platform could be launched by Q2 of 2019, with ErisX initially supporting spot trading, before branching out to futures.

Speaking with CNBC Fast Money, Steven Quirk, executive vice president of TD Ameritrade’s Trader Group, explained that the bank’s top brass have high hopes for the platform and the firms backing it. Quirk elaborated:

“I think the appeal for us is that [ErisX has] the biggest players in the Bitcoin space from a market making standpoint, both DRW and Virtu here, and you also have Cboe in a partnership with NEX. So you have people that are very well versed in this space and what we’re bringing to the table as a strategic investor is a pretty deep understanding of our 11+ million retail clients and what they look for when it comes to a product.”

Quirk, who is passionate about investor education, added that ErisX will be the perfect regulated way for common consumers to gain access to this nascent market. He added that the futures contracts on this platform will be readily available for TD Ameritrade’s vast clientele, and to top it off, will be offered at no extra cost in comparison to Cboe or CME’s well-established crypto asset contracts.