By the end of the summer of 2021, Interactive Brokers clients will be able to trade cryptocurrencies on the broker’s platform, CNBC reports.
\n\n
“We have been asked for this, and we will fulfil this wish by the end of the summer”, said Thomas Peterffy, the company’s founder and CEO.
\n\n
Currently, the broker offers trading of bitcoin futures on the CME.
\n\n
CNBC sees the move as lowering the entry barrier to the crypto market for retail investors. The move will also heighten competition for Coinbase.
\n\n
The publication notes the risks of this new line of business for the broker, given regulatory uncertainty surrounding the status of coins.
\n\n
According to Peterffy, a challenge for the company will be ensuring 100% safekeeping of client assets.
\n\n
As of the end of Q1 2021, Interactive Brokers had opened 1.33 million accounts, with clients entrusting the broker a total of $330.6 billion.
\n\n
Brian Armstrong, co-founder and CEO of Coinbase, doubted the prospect of reducing trading fees even in the mid-term.
\n\n
In May, Goldman Sachs issued a ‘Buy’ rating on the shares of the largest US bitcoin exchange. According to their calculations, the target price for the shares is $306 (as of the close on June 8, the shares were trading at $220.66).
\n\n
Earlier, David Trainer, head of New Constructs, predicted a 98% decline in Coinbase’s profitability as competition intensifies. A specialist valued the cryptocurrency exchange’s fair market capitalization at $18.9 billion. Messari researchers pegged this figure at $28 billion.
\n\n
Subscribe to ForkLog news on Telegram: ForkLog Feed — the full news feed, ForkLog — the most important news, infographics and opinions