The U.S. stock trading exchange TradeZero (www.tradezero.co) has just announced that it will be offering a “Dark Pool” for Bitcoin whales. Through a partnership with Bitcoin serial entrepreneur Jered Kenna, the firm will enable clients to participate in commission-free dark pool cryptocurrency trading.
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TradeZero Enables Dark Pool Trading for Investors with Help From a Bitcoin Pioneer
TradeZero is an online brokerage service that offers commission-free stock and ETF trading for U.S. markets. Now, the company is adding bitcoin to its featured services due to the growing demand for cryptocurrency trading.
Daniel Pipitone, Director of TradeZero, Inc. says when it comes to digital currencies, the company is “looking to provide the non-US investor with the same access, tools and discounted commission structure that many US traders enjoy today.”
The trading firm is also getting support from former Tradehill exchange founder Jered Kenna, who pioneered dark pool cryptocurrency trading in 2011. Off-exchange trading is very popular for investors; as Reuters reports, the method accounts for 40 percent of all U.S. stock trades.
TradeZero will enable secure cryptocurrency trading in a dark pool environment that will be commission-free, and will allow private and larger purchases for its clientele. The company believes this will appeal to serious investors who are looking to build their portfolios with cryptocurrencies, such as bitcoin.
Kenna details how this type of trading will lure in investors:
As larger mainstream investors wish to diversify from the stock market during this time of heightened global uncertainty and high P/E ratios, TradeZero will allow for making of sizeable trades without raising market price or alerting others to their positions.— I’ve been bullish on bitcoin since it was two cents and this platform is another great enabler in letting institutional and individual investors alike trade in bitcoin without market depth risk.
TradeZero claims to offer a safe and secure way to purchase bitcoin, and says it will protect with multi-signature technology. The firm explains that its dark pool service will offer clients the “highest level of enterprise-grade security to protect their digital assets.”
Digital currency markets held on the site will be kept up-to-date with real-time price indexes. Clients can also deposit both cryptocurrency and fiat to use with the firm’s trading platform. TradeZero says 24/7 email and web-chat services will be available for its customer base.
Currently, the minimum to join the dark pool service offered by TradeZero is $10,000 USD, or the equivalent in digital or other fiat currencies.
With the bitcoin market having far less liquidity than ETF’s and stocks, mainstream investors in the past have stayed away due to volatility. However, with dark pool, off-exchange trading, investors may be more enticed to keep the cryptocurrency in their portfolios.
Other exchanges, such as Kraken, and OTC market operators such as Cumberland Mining offer off-market trading features for their clientele as well. TradeZero’s platform, because it offers stocks and ETF’s, may bring more investment types to the Bitcoin industry over time.
What do you think about TradeZero adding dark pool trading? Let us know in the comments below.
Images courtesy of Pixabay, TradeZero, and Tribeca.
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