Cryptocurrency trading for institutional investors like hedge funds and pension funds is now possible in Germany, thanks to a partnership between German securities trading bank, VPE WertpapierhandelsBank AG, and Berlin fintech company solarisBank.
VPE is now the first securities trading bank which offers institutional cryptocurrency trading in Germany.
«To date, trading digital tokens has been restricted to crypto exchanges and online market places. We are pleased to be the first German bank to offer our customers cryptocurrency trading services», – said Katharina Strenski, a rep for VPE.
VPE is regulated by Germany’s financial watchdog, BaFin. VPE’s cryptocurrency trading account is held in escrow by solarisBank, but customers can access their individual crypto wallets hosted by VPE.
Unlike stocks, crypto trading is dominated by individual investors. But as the market has mushroomed during the past year, institutional investors have been clamoring to get in on the action.
«Until now, institutional investors have faced high entry barriers to crypto trading. Our cryptocurrency trading services offer a much more convenient alternative», – said VPE.
Ari Paul, the chief investment officer of crypto investment firm BlockTower Capital, and other financial experts say it’s only a matter of time before institutional money starts pouring into crypto because bitcoin has become too big to ignore.