🛥 All Aboard: Why Banks and Major VC Funds Will Soon Depend on Market Making

📊 Recently, BlackRock, one of the giants in the world of investments, has been searching for a market maker for its Bitcoin ETF. Negotiations with Jane Street, Virtu Financial, Jump Trading, and Hudson River Trading are already in full swing. But this is just the tip of the iceberg. Here’s why soon all banks and major VC funds will find themselves in need of attracting Market Making services:

1️⃣ Development of crypto markets: We are already witnessing traditional financial institutions actively integrating into the world of cryptocurrencies. Given the volatility and diversity of crypto assets, Market Making becomes a crucial tool for ensuring liquidity and risk management.

2️⃣ Demand for innovative products: Investors are increasingly seeking new opportunities and instruments. Creating ETFs and other derivative financial instruments requires banks and VC funds to engage market makers to support liquidity and price stability.

3️⃣ Globalization and diversification: Financial markets are becoming more globalized and diverse. Market makers assist financial institutions in navigating this complex world by offering liquidity and price stability on various markets.

4️⃣ Technological progress: Modern technologies such as artificial intelligence and algorithmic trading are becoming the foundation for effective Market Making. Banks and VC funds are striving to utilize these technologies to optimize their operations.

5️⃣ Regulatory pressure: Tightening regulatory requirements in many countries compel financial institutions to seek reliable partners to ensure compliance with norms, especially in the context of liquidity and market transparency.

📈 Therefore, Market Making will not only become important but will become a critically necessary element in the strategies of banks and major VC funds in the near future.