TP ICAP offers European clients crypto-linked ETP

Interdealer broker, TP ICAP said it has begun to offer its European clients crypto-linked exchange-traded products (ETP), with first trades already completed with Goldman Sachs.

The firm, the world’s largest inter-broker dealer by revenue, said it traded outright the ETC Group Physical Bitcoin against the CME Bitcoin Future in the form of an EFP (Exchange for Physical).

Crypto ETP market makers DRW, Flow Traders and Jane Street provided liquidity for the trades.

“We’ve seen increasing interest in crypto assets products this year as it continues to mature and institutionalise as an asset class. We expect to see more growth and more demand for these kinds of products in 2022,” Simon Forster, co-head of TP ICAP digital assets said in a 10 January statement.

Investor appetite in crypto assets is growing and crypto-backed products could serve as a potential hedging tool.

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Max Minton, APAC head of digital assets at Goldman Sachs said, “Institutional demand continues to grow significantly in this area and this partnership will help us expand our capabilities to serve our clients.”

The crypto ETP is the latest in a number of crypto liquidity products that TP ICAP now offers under the CME’s Bitcoin and Ether futures and bitcoin options.

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“We are excited to provide liquidity to TP ICAP to meet the growing institutional demand for crypto exchange traded products (ETPs) from sophisticated market participants such as Goldman Sachs, said Bernardus Roelofs, Head of ETF and Institutional Sales & Trading at DRW.

“As a leading global market maker in crypto ETPs, spot and derivatives, we look forward to expanding the partnership and serving as a source of trusted, deep liquidity as institutional demand for the products offered on the platform continues to increase.”

To contact the author of this story with feedback or news, email Jeremy Chan

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