Rather than creating competition for cryptocurrencies, the NYSE operating overnight could increase trading volumes for both types of assets.
Continued stock trading is likely to benefit the Bitcoin ETF market.
(Shutterstock)
Posted on April 23, 2024 at 5:48 PM ET.
Conventional wisdom may be that the introduction of 24-hour stock trading, as New York Stock Exchange (NYSE) officials surveyed market participants this week, would come at the expense of crypto flows. That's because traders will be able to access the stock market at odd hours, and cryptocurrencies that have always been traded 24/7 will lose their monopoly as the only true night-time trading game in town.
But Ilgar Arkeperov, a developer who has worked for crypto and stock market makers, says that if the New York Stock Exchange's proposal becomes a reality, it could actually increase interest in all asset classes. Stated.
That's especially true given the increasing convergence of stocks and digital assets, a development facilitated by spot Bitcoin (BTC) ETFs that bridge the gap between the two, according to Archeperov.
read more: Grayscale’s cheap mini Bitcoin ETF could be more of a GBTC sidekick than an offramp
“If the traditional world were to operate 24/7, these assets would increase liquidity everywhere,” Archeperov said. “When the biggest venues are open, you have to trade. You have to provide technical support for automated trading systems, and you actually want to make more money while your employees are in the office. You'd think that would result in a lot of trading involving cryptocurrencies. Good. It would boost everything, not just the traditional markets.”
ali redboard Head of global policy at TRM Labs, with a focus on compliance. He said investors' appetite for cryptocurrencies will only increase as traditional asset classes catch up with continuous trading. And that equates to an increase in the volume of digital asset transactions.
“In this world of 24/7 information, it makes sense,” he said. “Why shouldn't the stock market be one of those things? I really believe that cryptocurrencies have given it a boost. [narrative]”
The first Financial Times newspaper was report According to NYSE News, the exchange is investigating whether extended trading days should be limited to weekdays. In New York, exchanges officially operate from 9:30 a.m. to 4 p.m., but brokerages such as Robinhood have already extended trading hours.
But it's still early. And Wall Street giants like Steve Cohen Seek SEC approval For unique 24/7 trading operations.
Improved Bitcoin ETF price tracking
Still, the idea has yet to meet any serious opposition from regulators or others, and crypto traders are keeping an eye on what will happen if it does.
Bartosz Lipinski, CEO of cryptocurrency trading platform Cube Exchange, said in a Telegram message that if stock trading becomes available 24/7, nightly trading volumes will be “almost the same as today.” The company said it expects the impact on virtual currency trading volumes to be minimal.
Volume aside, continued stock trading could benefit the BTC ETF market, according to Lipinski.
“that [would enable] “Fund price tracking will be more accurate,” he said. “If they trade 24/7, like cryptocurrencies, it makes sense that there would be less of a difference between NAV and the overall value of the fund.” [assets under management]”
read more: There are currently 11 Spot Bitcoin ETFs.Here's what's best for you
TRM's Redboard said the NYSE study shows Wall Street is “adopting some of the promises of cryptocurrencies,” adding that ultimately “cryptocurrencies and Wall Street will just coexist.” “Instead, there is an ecosystem of different types of assets that people engage in.”
Similar to the wave of Bitcoin ETFs, these assets will blend traditional and digital financial products, creating new trading opportunities, according to Redboard.
“What we're seeing is that 'generation crypto' is having a really meaningful impact on the traditional financial system,” he said. “This is what people want today… whether through their Coinbase account or their own hosted wallet, they want [crypto] Open 24/7, but also wants to invest in the stock market. But they want to do it 24/7 at their convenience. ”
