EDX Markets, a cryptocurrency exchange backed by financial giants such as Citadel and Fidelity, recently started crypto trading services last week. The platform allows trading for cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH).
Although not officially registered with the U.S. Securities and Exchange Commission (SEC), EDX Markets carries significant weight in the market due to its institutional backers. With the platform listing these four cryptocurrencies, they have received a significant vote of confidence among crypto investors.
There’s a notion in the crypto market that since these cryptocurrencies have been listed by EDM Markets, they won’t qualify as securities in the eyes of the SEC. “These specific cryptocurrencies are generally perceived as commodities by regulatory bodies, which significantly mitigates potential legal challenges,” Sei Labs co-founder Jeff Feng told Decrypt. This was particularly the reason behind Bitcoin Cash’s dramatic price rally of more than 100 percent over the last week.
As of press time, Bitcoin Cash is trading at $229 with a market cap of over $4 billion. Also, the surge in market optimism following the filing of BlackRock’s spot Bitcoin ETF has served as a catalyst for BCH to rally.
BlackRock’s request to the SEC for a Bitcoin spot ETF has sparked a surge in similar applications, leading to positive sentiment in the cryptocurrency market. This has particularly affected Bitcoin and related projects, generating optimism among investors.
EDX Signals TradeFi’s Growing Participation in Crypto
EDX Markets aspires to be the preferred crypto marketplace for industry leaders. It intends to leverage traditional finance methods to offer liquidity, competitive quotes, and a non-custodial model to address conflicts of interest.
Additionally, it has introduced a special quote for retail customers, enabling them to obtain improved pricing. However, due to regulatory uncertainty, the platform will have limited offerings in the near future, as stated by EDX Markets CEO Jamil Nazarali in April.
The launch coincides with increasing scrutiny faced by the crypto industry, as regulatory bodies such as the U.S. Securities and Exchange Commission intensify their actions against major crypto exchanges like Binance and Coinbase, citing potential securities law violations and other concerns.
Furthermore, the support for EDX indicates a rising interest in digital assets among traditional market participants, despite the current downturn in the crypto markets from their previous record highs.
It is clear that traditional financial (TradFi) players are looking to grab some market share in crypto amid signs of a lucrative future ahead. BlackRock’s entry could prove to be a game-changer in the market going ahead.
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