This week Jane Street Capital a global proprietary trading firm has announced it has been trading BTC these days. Often referred to as one of Wall Street’s most secretive investment companies, Jane Street says if cryptocurrencies continue to rise they expect to be involved.
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The ‘Secretive’ and High-Tech Trading Firm Jane Street is Flipping Bitcoins
The trading firm Jane Street operated in New York City, London and Hong Kong and the company actively trades $8-13 billion worth of equities, Bonds, Futures, Options, and other investments. Jane Street claims to execute over 1Mn trades per day. The New York Times has referred to Jane Street as one of the most secretive firms out there that handles a lot of trade volume. The news outlet called the traders “coders with a Ph.D.” and the firm specializes in lots of arbitrage trades. to Business Insider, the firm has explained it is now dabbling in BTC trading.
Arbitrage opportunities in the world of cryptocurrencies and bitcoin are very tempting to firms like Jane Street because spreads can be very high on different trading platforms. Global BTC exchanges can have as much as 10 percent in arbitrage opportunities between each trading venue. Jane Street has not given any details on how it has been trading BTC but explains that if cryptos continue to be hot, the company will continue to remain active.
“Jane Street trades over 56,000 products globally across a wide variety of asset classes, including bitcoin,” the company explains this week.
Jane Street has always taken a considered approach to trading opportunities and will continue to do so, as more cryptocurrency products emerge, we expect to be involved.
Cryptocurrency arbitrage opportunities can be as much as 10% on different exchanges.
Jane Street Follows Other Well Known Wall Street Market Makers
The news also follows other big-name Wall Street firms who have been reportedly trading bitcoin or crypto-based exchange-traded notes and futures products. This year at the World Economic Forum in Davos, Goldman Sachs Lloyd Blankfein explained if clients want to trade BTC they will help facilitate. “We’re clearing futures in bitcoins for some of our futures clients — We’d clear them,” . “We’re a prime broker, and so if our clients are going to do it, we’re going to do it.”
Back in September of 2017, Jamie Dimon explained that bitcoin traders were “stupid.” But the firm was caught red-handed trading BTC exchange-traded notes for clients. Further, the company has stated it is open to offering clients CME and Cboe bitcoin futures.
Jane Street is different than JP Morgan and Goldman as it uses the programming language that helps the firm’s traders quickly execute trades in changing market conditions. The company has even released some open source code for its Ocaml libraries. Jane Street did not reveal to the press how it was actively trading cryptocurrencies.
What do you think of Jane Street trading bitcoin? Let us know what you think about this story in the comments below.
Images via Shutterstock, Pixabay, and Jane Street.
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Bitmain has found itself in a war with words with the monero community over the release of its latest cryptocurrency miner, the Cryptonight-capable X3. The unit is being offered at a discounted rate to existing customers, but critics claim this is because the miners will soon be ineffective at mining monero, the main coin to use the X3’s Cryptonight technology. Monero lead developer Riccardo Spagni has emphasized that the units will not work on monero due to a scheduled hard fork designed specifically to outwit the Cryptonight algorithm.
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“We are pleased to announce the all-new Antminer X3, to mine cryptocurrencies based on the Cryptonight hashing algorithm,” Bitmain cheerily on March 15. The new units would start shipping instantly, limited to one per customer to prevent hoarding. The price would even be dropped to $3,000 for existing customers, according to an . Posters on monero’s reddit board have urged buyers not to purchase the units due to the scheduled change to the coin’s Proof of Work algorithm. Others have gone so far as to accuse Bitmain of mining with the machines for months, and only shipping them now that monero’s algorithm is due to change, rendering them useless.
Cryptonight, the chipset fitted to Bitmain’s X3s, has turned into a crypto nightmare for anyone who’s been trying – and failing – to subsist off monero mining this year. As one keen-eyed observer , after Bitmain took possession of the chips, monero’s hashrate rocketed. The monero team, led by Riccardo Spagni, who’s to Bitmain as “a known bad actor”, struggled to work out what had happened. A monero mining botnet that had infected millions of computers was one possibility floated, but this was discounted.
To combat the sudden increase in hashrate, Monero a PoW change on February 11 to make the privacy coin less susceptible to the Cryptonight algorithm. While not mentioning Bitmain by name, the post noted how “Mining, in general, is also prone to the rich-get-richer effect, which ultimately leads to centralization,” and continued:
We will perform an emergency hard fork to curb any potential threat from ASICs if needed. Furthermore, in order to maintain its goal of decentralization and to provide a deterrent for ASIC development and to protect against unknown or undetectable ASIC development, the Monero team proposes modifying the Cryptonight PoW hash every scheduled fork, twice a year…Finally, we will continue to research alternative Proof of Work functions that may provide better ASIC resistance than Cryptonight.
As a result of the hard fork, the Bitmain X3s will be largely worthless, at least for the purposes of mining monero. All that will be left for recipients of the new X3s is such alts as Bytecoin, Digitalnote, and Darknetcoin: shitcoins to all intents and purposes that cannot be easily offloaded onto the market to offset mining costs.
Anyone who orders one of Bitmain’s new units will find themselves engaged in a race against time. As one person : “Not informing their users that their machine will be useless to mine the biggest and most popular by far crytponight coin is misleading and that is being polite.” By the time they take delivery of their new Antminer, more Cryptonight coins may have hard forked, in which case buyers could wind up lumped with the world’s most expensive doorstop.
Do you think Bitmain has acted unethically, or is it just doing business? Let us know in the comments section below.
Images courtesy of Shutterstock, Bitmain, and Francis Pouliot.
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bitcoin Press Launch: Plaza Solution’ MerchantChain ™ is the fastest, most sustainable, most safe, a lot of scalable, and most future-proof commerce-specific distributed ledger technology (DLT or “blockchain”) on the earth. The PLAZA Public Presale will certainly start at 9:00 AM GMT, March 22, 2018 17 March 2018: Singapore: Plaza Equipment’ MerchantChain ™ strategies to increase as much as 100,000 ETH […]
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Published at Sun, 18 Mar 2018 01:47:21 +0000
