The second largest German stock market exchange, Stuttgart Exchange Group, is partnering with SolarisBank to create a zero-fee crypto exchange. The exchange was originally supposed to begin trading in September but is pushed back until the first half of 2019.
In a press release on December 12th, SolarisBank and the Stuttgart Stock Exchange announced that they will be releasing a zero-fee cryptocurrency exchange trading Bitcoin and Ethereum coins for both institutional and retail investors. In addition, there will be a platform designed specifically for ICOs, which will be traded on a secondary market.
Many investors seem to want exposure to cryptocurrencies without having the hassle of dealing with the custody of the assets. While that thought process goes against what many cryptocurrencies stand for, custody of the assets is one of the major problems holding this market back from more adoption. Exchanges like this can help the average/institutional investor sleep better at night while investing in this space.
“The Stuttgart Stock Exchange and SolarisBank share the claim to shape the future of the financial sector. In our shared vision of a hybrid financial world, with both fiat and cryptocurrencies, a reliable and efficient trading center is a vital contribution. We are very pleased that Börse Stuttgart sees their partner of choice in our Blockchain Factory with Peter Grosskopf and Michael Offermann.” -Roland Folz, CEO of SolarisBank
This news piggybacks the news that Switzerland’s ETP, HODL, has recorded record high trading volume in the short time this ETP has been traded. Over the past month the average trading volume was about 20,000 shares traded daily, yet on Thursday and Friday of last week, the volume rose to 53,233 shares on Thursday and 62,986 shares on Friday according to a tweet by Su Zhu, CEO of FX Hedge Fund. This volume jump occurred as Bitcoin dropped to $3,200 and Ethereum dropped to $80. It is clear that institutional investors are interested in investing in cryptocurrencies, as long as the custodial part is handled.