Today, New York-based bitcoin exchange itBit announced that it had launched its Global OTC Agency Trading Desk. This agency offers over-the-counter trades between large investors and is targeted toward clients who are interested in transactions over 100 bitcoin. This service is similar to brokerage services offered by Binary Financial or Barry Silbert’s Genesis Trading.
By using an OTC trading desk like the one introduced by itBit, large investors can make trades directly with other traders, without using an exchange. Many institutional investors prefer this because it allows them to execute trades without affecting the exchange order books or market prices.
Due to the low volume, high volatility nature of bitcoin, traders who had to trade on the exchange would see the price rapidly change between when they started purchasing bitcoin to when they finalized their large purchase. According to itBit, benefits of the company’s new OTC trading desk include significant liquidity, same-day settlement, and no broker/trading fees.
In a statement, Bobby Cho, director of trading at itBit, said: “Up until now, the OTC bitcoin trading market has been operating in parallel to existing exchanges. With the itBit Global OTC Agency Trading Desk, our customers will be able to access a regulated OTC market through their existing itBit exchange accounts, matching OTC buyers and sellers through itBit’s global network of clients across more than 100 countries.”
The post itBit Announces Launch of Global OTC Agency Trading Desk appeared first on Bitcoin Magazine.