The Dutch Authority for the Financial Markets (AFM) has been warning consumers not to engage in cryptocurrency trading. However, Flow Traders NV seems not to heed this call as it has gone ahead to enter the crypto market.
Flow Traders NV is currently the largest European exchange-traded fund (ETF) and it is located in Amsterdam. The exchange is said to be the first company to buy and sell exchange-traded notes based on Bitcoin (BTC) and Ethereum (ETH). Bloomberg holds the view, that such publicly traded notes have the potential to expand the interest of cryptocurrency. Since it will simplify the process of investing, at the same time, making it cheaper.
Institutional investors interested
Flow Traders NV Co-Chief Executive Officer, Dennis Dijkstra feels that the digital currency’s interest is rising. He stated that cryptocurrency is big and that it is to be regulated soon. He intimated that the market participants are much more professional than people think. Dijkstra also confirmed that institutional investors are interested since his firm has been getting a lot of requests.
This is a big plus in boosting the confidence in the digital currency’s market future. By allowing institutional investors to transact crypto ETNs with ease as well as cheaply of the fiat trade, will aid in increasing the crypto’s trading popularity.
AFM disregards the digital currency
However, the AFM does not seem to share the same sentiment. In fact, it came out to oppose the digital currency. A spokeswoman for the Dutch Authority, Nienke Torensma stated that by virtue of its newness and the anonymity it potentially offers, it is very prone to abuse. She said that given its inability to serve the promised purpose as a currency, the AFM does not regard it as an asset class. Thus, she went on to discourage activities in cryptos both by consumers and professional license holders.
In spite of, AFM disregarding the crypto or even urging the public not to use it, there is no legal action it can impose to stop any firm from trading digital coins on regulated exchanges.
Nevertheless, Flow Traders NV indicated its willingness to work with regulators. Dijkstra stated that the biggest thing was keeping regulators on board.
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