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Flowdesk: Liquidity Provider for Grayscale Bitcoin ETF

January 22, 2024 | by stockcoin.net

flowdesk-liquidity-provider-for-grayscale-bitcoin-etf

Flowdesk, the liquidity provider for Grayscale Bitcoin ETF, has successfully raised $50 million in a Series B funding round. Led by venture capital firm Cathay Innovation, the investment round also saw contributions from Cathay Ledger Fund, Ripple, Eurazeo, ISAI, Speedinvest, and BPI. Flowdesk plans to utilize the funding to enhance its over-the-counter (OTC) offering, expand its regulatory coverage in Singapore and the U.S., and recruit new personnel. With the recent approval of spot bitcoin ETFs in the U.S., this significant funding indicates the importance of liquidity in attracting institutional inflows. In addition to being a liquidity provider for Grayscale Bitcoin Trust (GBTC), Flowdesk also operates as a market maker for Societe Generale’s euro-based stablecoin, EUR CoinVertible (EURCV).

Flowdesk: Liquidity Provider for Grayscale Bitcoin ETF

Overview

Flowdesk, a leading crypto market maker, recently announced that it has raised $50 million in Series B funding. The investment round was led by Cathay Innovation, with contributions from Cathay Ledger Fund, Ripple, Eurazeo, ISAI, Speedinvest, and BPI. This funding will be utilized by Flowdesk to expand its over-the-counter (OTC) offering, hire new personnel, and enhance its regulatory coverage in Singapore and the U.S.

Flowdesk Raises $50M in Series B Funding

Flowdesk’s successful Series B funding round demonstrates the growing interest and support for liquidity providers in the crypto market. The investment was led by Cathay Innovation, a venture capital firm that focuses on disruptive technologies. Other notable participants in the funding round include Cathay Ledger Fund, Ripple, Eurazeo, ISAI, Speedinvest, and BPI. The $50 million raised will be used by Flowdesk to further develop its OTC offering, strengthen its team, and ensure compliance with regulatory requirements.

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Flowdesk’s Role as a Liquidity Provider

Flowdesk plays a crucial role as a liquidity provider for the Grayscale Bitcoin Trust (GBTC). As a market maker, Flowdesk provides liquidity by actively buying and selling GBTC shares, thereby ensuring that investors can enter or exit their positions at any time. Liquidity providers like Flowdesk are essential for the smooth operation of ETFs, as they enhance market efficiency and reduce trading costs. By maintaining a liquid market for GBTC, Flowdesk attracts institutional investors and facilitates the overall success of the ETF.

Expansion of OTC Offering

With the newly raised capital, Flowdesk aims to expand its OTC offering. OTC trading provides several benefits to market participants, including increased privacy, faster execution, and reduced price slippage. By growing its OTC services, Flowdesk can cater to the needs of institutional investors and high-volume traders who prefer off-exchange transactions. This expansion will further strengthen Flowdesk’s market presence and position it as a trusted liquidity provider in the crypto industry.

Hiring New Personnel

To support its growth and operations, Flowdesk plans to hire new personnel. Skilled personnel are crucial in market-making operations, as they are responsible for executing trades, monitoring market conditions, and managing risk. By expanding its team, Flowdesk aims to enhance its market-making capabilities and provide top-notch services to its clients. The addition of experienced professionals will further solidify Flowdesk’s position as a leading liquidity provider.

Regulatory Coverage in Singapore and the U.S.

Flowdesk recognizes the importance of regulatory compliance and plans to expand its regulatory coverage in Singapore and the U.S. As the crypto industry faces evolving regulations, it is vital for liquidity providers to adhere to applicable laws and guidelines. By ensuring compliance and security, Flowdesk can instill confidence in its clients and maintain a reputable standing in the market. Navigating regulatory frameworks is a complex task, but Flowdesk remains committed to upholding the highest standards of compliance.

Significance of Liquidity for Bitcoin ETFs

The recent approval of spot bitcoin ETFs in the U.S. highlights the significance of liquidity for these investment vehicles. Liquidity refers to the ease with which an asset can be bought or sold without causing a substantial impact on its price. In the context of ETFs, liquidity is essential for attracting institutional investors, as it allows them to enter or exit positions efficiently. With its role as a liquidity provider for the Grayscale Bitcoin Trust, Flowdesk contributes to the success of bitcoin ETFs by ensuring a liquid market environment.

Flowdesk’s Market Making Role for EUR CoinVertible

In addition to its role as a liquidity provider for GBTC, Flowdesk also serves as a market maker for Societe Generale’s euro-based stablecoin, EUR CoinVertible (EURCV). By offering market-making services for EURCV, Flowdesk further diversifies its portfolio and expands its reach in the crypto market. This partnership demonstrates Flowdesk’s expertise in facilitating seamless trading experiences for various digital assets.

Conclusion

The $50 million Series B funding raised by Flowdesk is a testament to the growing importance of liquidity providers in the crypto market. As a liquidity provider for the Grayscale Bitcoin Trust and a market maker for EUR CoinVertible, Flowdesk plays a crucial role in enhancing market efficiency and attracting institutional investors. With its plans to expand its OTC offering, hire new personnel, and expand regulatory coverage, Flowdesk is well-positioned to continue its growth and maintain its reputation as a trusted liquidity provider.

Disclosure and Contact Information

For more information on CoinDesk’s privacy policy, terms of use, and cookie policy, readers are encouraged to visit the CoinDesk website. CoinDesk operates as an independent subsidiary under the ownership of Bullish group, a regulated, institutional digital assets exchange. CoinDesk maintains high journalistic standards and abides by a strict set of editorial policies to ensure integrity in its reporting. For inquiries or further information, readers may contact CoinDesk and Jamie Crawley through the provided contact details.

Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Readers are advised to conduct their own research and consult with a professional financial advisor before making any investment decisions.

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