James Putra from TradeStation talks about Ethereum, increasing institutional investment in cryptocurrency: what does it all mean?
Interest in Ethereum (CRYPTO: ETH) increased thanks to the rise of NFTs and the fall in prices compared to Bitcoin (CRYPTO: BTC), TradeStation James putra Benzinga said.
Growing interest: After a January “out of this world,” TradeStation is still seeing continued growth and interest in the cryptocurrency space, Putra said during a panel at the 2021 Benzinga Crypto Festival.
“What has been surprising for us is the adoption of Ethereum,” Putra said.
Ethereum recently accounted for around two-thirds of TradeStation’s trading volume, a surprise after months of Bitcoin accounting for around 80% of trading volume.
The growth of Ethereum trade is similar to something Coinbase Global Inc (NASDAQ: COIN) shared in its second quarter earnings report.
Putra attributes the rise of non-fungible tokens and the fact that people “generally like low-priced assets”.
“Behind the scenes, there are a lot of exciting things going on with Ethereum.”
TradeStation now has six assets listed and plans to add more soon. Putra said that 70% of all crypto volume occurs in Bitcoin and Ethereum, which gives them access to a huge amount of customers.
“Our customers definitely want other assets,” Putra said, which the company will correct soon.
Want to learn more about how cryptocurrency goes to the moon? See you at the Crypto Festival in Benzinga, on August 31 and September 1.
Is there an institutional interest? : Moderator Scott melker underlined the strong interest of big names like MicroStrategy Incorporated (NASDAQ: MSTR) and Tesla Inc (NASDAQ: TSLA) invest in Bitcoin.
Putra told viewers that institutional interest has increased and may be an area to watch in the third quarter.
“The institutional side was surprising,” Putra said.
TradeStation no longer has to convince companies to add cryptocurrency to their balance sheets or look for leads, according to Putra. Now TradeStation is able to show customers what it can offer them instead.
Putra cited a conference organized by Michael Saylor, CEO of MicroStrategy which has shown how many other companies are starting to put crypto on their balance sheets.
“I think Saylor said it would take six months for companies,” Putra said, adding that was something TradeStation was anticipating in the third quarter.
Related Link: Benzinga Announces Crypto Investment As Part of Company Treasury Strategy
NFT / Metaverse: The rise of NFTs is one area that TradeStation is examining. Putra mentioned that some successful projects include those of Gary Vee and Bored Monkey Yacht Club.
TradeStation has been in talks with companies about ways to symbolize themselves and offer rewards.
A client is considering ditching their website – he thinks it’s a thing of the past – and wants to go into the metaverse and use it as a place to attract clients and retain talent.
Trading strategies: Putra said one way to invest in Bitcoin is to own the cryptocurrency and sell the futures contracts, which typically sell for a higher price.
“It’s close to a risk-free trade,” Putra said, adding that this trade helps protect your margin. “By using this trade you can keep your bounty as the strikes come.”
Putra said he believes Bitcoin will rise by the end of the year, but stopped before offering a price prediction.