Bitcoin Cash Demand Shocked Us, Says Circle Trading Chief

Representatives from several trading-oriented cryptocurrency firms took the stage at CoinDesk's Consensus: Invest event.

Nov 28, 2017 at 7:50 p.m. UTC
Updated Sep 13, 2021 at 7:12 a.m. UTC

The pace at which bitcoin cash – the cryptocurrency that forked off the main bitcoin blockchain earlier this year – gained trading volume was "shocking," according to Circle's head of trading.

Speaking during a panel at CoinDesk's Consensus: Invest event in New York, Circle's Dan Matuszewski noted that the startup – which operates a trading desk and today unveiled a new investment-oriented app slated for release next year – was taken aback by the trading demand around bitcoin cash after it went live in early August.

"Bitcoin Cash got liquid and tradeable instantly, which was shocking to us. It was born out of nowhere … [and] became one of the biggest products we traded," he said.

Matuszewski spoke alongside Adam White, head of Coinbase's GDAX digital asset exchange; Michael Sonnenshein, GrayScale Investment director of sales and business development; and Hu Liang, founder of Omniex. The panel was moderated by Alex Sunnarborg, co-founder of Tetras Capital.

The panel – in part an introduction to the cryptocurrency industry for mainstream investors – focused on some of the challenges and considerations faced by those firms seeking to offer such services. Among those: assessing the legal standing of a particular token ahead of providing tools or resources around it.

On the question of demand among those investors, panelists spoke to what they characterized as a shifting landscape in which institutions are expressing interest – albeit cautiously.

"I think the narrative around this has really changed over the last 12 to 18 months," Sonnenshein said. 

GDAX's White notably offered insight into the make-up of its user base.

"Largely by user count, most customers tend to be retail," he told attendees, noting that the trading volume itself is primarily driven by institutional-level customers.

According to Liang, the market remains a nascent one where the institutional investors in question are still largely on the sidelines.

"We haven't reached escape velocity yet," he said. 

Disclosure: Grayscale Investments is a subsidiary of Digital Currency Group, CoinDesk's parent company. Digital Currency Group has an ownership stake in Circle and Coinbase. 

Image via Nik De for CoinDesk

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
First Mover Asia: USDC Hasn’t ‘Flippened’ USDT, but Trader Preferences Are Changing; Cryptos Rise Despite Bearishness

A Glassnode analyst suggests the collapse of the UST token has triggered a change in investors' stablecoin preferences; bitcoin holds above $30,000.

A Glassnode analyst suggests the collapse of the UST token has triggered a change in investors' stablecoin preferences; bitcoin holds above $30,000.

2
Musk Sets New Condition for Twitter, Citi Says Terra’s Fallout Unlikely to Hit Wider Financial System

The most valuable crypto stories for Tuesday, May 17, 2022.

The most valuable crypto stories for Tuesday, May 17, 2022.

3
Market Wrap: Cryptos and Stocks Mixed Amid Bearish Sentiment

BTC is stabilizing around $30K while stock market volatility begins to fade.

BTC is stabilizing around $30K while stock market volatility begins to fade.

4
New Data Shows Underground Bitcoin Mining Thriving in China

The U.S. has also expanded its lead in the global hashrate competition.

The U.S. has also expanded its lead in the global hashrate competition.