EF Hutton sponsors new ACEx membership exchange
EF Hutton announced on Wednesday it is leading a group of financial service firms to set up the American Cryptocurrency Exchange (ACEx), a first of its kind of membership exchange in North America.
The exchange is expected to commence trading of digital assets such as tokens and virtual currencies similar to Bitcoin by January 2019. Members of the exchange are registered financial services companies, brokers and advisers.
In its statement, the financial services firm says it wants to attract customers in a market, which has seen substantial growth with trading volume in digital assets more than 12 times higher than it was in 2016.
Expanding US market
Initial coin offerings (ICOs) raised over $13bn globally according to PwC and in the first half it was more than 40% of the entire amount raised by companies through traditional stock IPOs and more than 30% raised through venture capital.
EF Hutton citing data from Bloomberg says the US market lags with only 2% of investors holding bitcoin in a digital asset portfolio. The US is losing crypto market share to offshore marketplaces.
The new membership exchange aims to grow the market by appealing to customers who want the security of dealing with a trusted financial provider and is looking to add over 2 million customer accounts from members.