Growth in Crypto and New OTC Options for U.S. Investors


This morning, MarketsandMarkets has released a new research report showing projected growth of cryptocurrency sectors to $1.4 billion in 2019 with a compound annual growth rate of 6.18%.

In looking closely at some of the underlying factors in this growth, the report cites buy-in by big companies like IBM and Oracle, and opportunities on platforms like Shopify, as well as a unique and interesting new move by Netcoins Holdings (NETC), a Canadian company that has set up OTC services for buy and sell side transactions in 42 U.S. states (see the full list here).

Netcoins’ partnership with security token platform Polymath allows the creation of secure tokens, and has accomplished the regulatory frameworks needed to offer OTC products in the majority of American states. In addition, residents of nations in Europe and Australia can also use Netcoin for crypto retail transactions.

The Netcoins move is an example of opening up markets and creating opportunity for liquidity – and it’s important for traders who like to take advantage of over-the-counter options instead of going through formal exchanges.

In a way, the OTC move sort of echoes the pending development of cryptocurrency exchange traded funds or ETFs that are still under consideration by the SEC. Both options allow for more diverse trading of cryptourrency portfolio positions, and that should give traders new reasons to get involved in Bitcoin and other coin markets.

Meanwhile, regarding those ETFs, some of the most recent news coming out this week shows some communications between the SEC and ETF backers. The regulator is looking at a final proposal on a range of ETFs: a new SEC commissioner, Commissioner Elad Roisman, met with Dan Gallancy and Dimitri Nemirovsky at SolidX, Laura Morrison and Kyle Murray from the CBOE and Adam Phillips from VanEck to be briefed on the rule change proposal, according to reporting Tuesday at Coindesk. Roisman is the newest commissioner with just a month or so on the job.

We’ll continue to look at whether the SEC ultimately signs on – the combination of OTC and ETF options really opens up choice for traders of all stripes, and this type of market change could lead to change as in crypto market values. Today, Bitcoin clings stubbornly around that $6400 mark: Ethereum is also somewhat stable, though under $200. At .16, NETC is right around where it was in September.