After Bitcoin (BTC), Coincheck Adds Ethereum (ETH) and XRP OTC Trading
Coincheck, the Japanese crypto exchange is prepping to offer Ethereum and XRP to institutional investors, though it’s just launched over-the-counter (OTC) trading for the two assets, following the debut of a similar Bitcoin OTC on April 1st.
With OTC trading, deep-pocketed investors could make large trades at a pre-arranged, fixed price without the hindrance of price fluctuations on traditional spot trading order books. Currently, the minimum amount of Bitcoin OTC investors can trade on Coincheck is set at 20 BTC. However, the recommended trading amounts can go as high as 225 BTC, which is worth about $1.15 million at the time of publishing.
As for Ethereum and XRP, the minimum over-the-counter trade is set at 500 ETH, worth about $82,500 and 250,000 XRP, worth about $81,600, respectively. Notably, as per Cumberland, a cryptocurrency market maker attributed the sudden price spike of Bitcoin above $5,000 on April 2, partially to the surge of Bitcoin orders caused due to the OTC trading, worth more than $4.9 million each.
Cumberland identified 13 orders of at least 1,000 BTC each that were traded on that day in less than an hour, starting after midnight.
Image Source – Unsplash.com