Business

Erik Gibbs

CMC Markets adds Bitcoin BCH support

A financial derivatives brokerage firm out of London, CMC Markets, has allowed traders to take positions against Bitcoin Core (BTC) and Ethereum (ETH) since July. The firm has now announced that it is giving its 60,000 customers more options and will provide support for both Bitcoin BCH, as well as Ripple (XRP) and Litecoin (LTC), all of which can be paired against the U.S. dollar.

The firm’s group commercial director, David Fineberg, said the decision to integrate Bitcoin BCH, along with XRP and LTC, was made after CMC’s “clients have expressed interest in extending their trading options.”

More brokerages have been looking for ways to increase crypto-based products as day traders move away from foreign exchange (Forex), contracts for difference (CFD) and spread betting in traditional exchanges. Offering the same types of products for the cryptocurrency markets has been seen as the possible solution, but derivatives have come under fire in the UK, with regulators contemplating a complete ban on the products. However, CMC doesn’t view this as a deterrent in a market that continues to look for more investment options in the crypto space.

Fineberg added, “Spread bets and CFDs offer a way to trade on cryptocurrencies as clients can take a position on market movements without owning the asset. By trading with an established provider, funds can be deposited and withdrawn with ease, avoiding the risks of purchasing cryptocurrencies directly through an exchange. However, like all other financial instruments we offer, we always recommend clients understand the risks and conduct thorough research before trading.”

The brokerage was a little slow to enter the cryptocurrency space. It only did so after several other brokerages, notably Admiral Markets, IG Group Holdings Plc,. Gain Capital’s City Index and Plus500 Ltd., had entered the market. However, the continued adoption of cryptocurrencies by traditional financial institutions shows how digital currency is grabbing hold and becoming a legitimate alternative to fiat options.

Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as SegWitCoin BTC coins. Altcoins, which value privacy, anonymity, and distance from government intervention, are referenced as dark coins.

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