Caspian, a leading crypto asset trading and risk management platform for institutional investors, has launched its pairs trading functionality.
Since its founding 19 months ago, Caspian has seen its trading volume steadily increase, with it exceeding $1 billion for the first time in June 2019. Caspian’s trading volumes were 207% higher in Q2 than what they were at the end of Q1, showing real institutional participation is growing in the crypto market.
Caspian’s institutional clients will now be able to use relative value-based strategies and statistical arbitrage thanks to the new pairs trading capabilities. Arbitrage trading is a popular and effective strategy as the nascent crypto market still has many inefficiencies.
Caspian’s price-ratio and price-spread pairs algorithms enable its clients to trade pairs using coins or derivatives from 35 exchanges. Caspian states that several trading firms are already using its new crypto pairs functionality.
Chris Jenkins, the Managing Director at Caspian, explained that he is seeing more and more trading firms adopting arbitrage strategies. As cryptocurrencies trade at different prices on multiple exchanges, this enables those with the right technology to profit from these inefficiencies. Jenkins explained that the situation now is very similar to when electronic trading of stocks first began.
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