Blockchain hedge fund Diverse Blockchain Partners (DBP) is to utilise the infrastructure and trading technology developed by trading technology company XTRADE.IO (XTRD).
XTRD has developed the same mature technology for cryptocurrency markets that is currently used throughout global financial markets to enable vastly more efficient trading than currently exists.
DBP utilises quantitative investing models to manage portfolios in a variety of different ways. The investment manager believes that combining a number of these investment models in the Partnership may reduce overall risk, or volatility, of the Partnership without reducing expected returns. DBP is owned by its general partner, Diverse Capital Partners (DCP), and managed by its investment manager, Diverse Capital Management (DCM). DCP and DCM have raised and managed more than USD350 million and have executed trades spanning virtually every asset class valued at more than USD160 billion across three separate hedge funds in the past 20 years.
Founded by global financial markets trading experts, XTRD is introducing a new infrastructure to allow banks, hedge funds, and large institutional traders easy, reliable access to any cryptocurrency market they choose. By building a low-latency infrastructure with a unified FIX API, XTRD is taking an industry standard technology used within global financial markets for over 25 years and introducing it to the cryptocurrency market. Along with a standalone trading platform and liquidity aggregation, the company may provide precise and virtually instant pricing data while minimising the slippage of trading cryptocurrency and digital assets.
While institutional investors have been eager to enter the market, currently retailer investors are the primary investors. However, with each new high, cryptocurrencies gain acceptance and institutions are incentivised to enter the space. XTRD hopes to facilitate this acceptance by creating for cryptocurrencies, what traditional infrastructure already provides for stocks including low latency execution and aggregated flow to supply liquidity to the most significant banks, brokers, pensions funds, and hedge funds. The creation of Bitcoin Futures by CBOE and CME as well as several SEC filings for ETFs is clear evidence that this new asset class is here to stay. XTRD aims to unlock the cryptocurrency asset class by assisting large institutional investors in getting over this hurdle that is keeping them from actively trading these markets.
DBP is an asset manager with a significant need for fast, reliable data and the ability to execute trades across multiple markets quickly. An XTRD/DBP strategic relationship creates a massive win for the entire asset class due to a higher level of efficiency that may exist as a result.
As a global marketplace, each cryptocurrency exchange currently has different listings, prices, and volumes which may vary across geographies and time. By acting on these inefficiencies, firms like DBP can not only provide profit to their clients but also help reduce the volatility of the cryptocurrency market as a whole.
“Our vision for crypto markets is firmly grounded on our long experience trading on Wall Street,” says Alexander Kravets (pictured), Co-Founder of XTRD. “There are huge inefficiencies in crypto markets that can be solved by applying existing technologies effectively. DBP is a great company for us to partner with because we’re both bringing innovative, but proven technologies to the new world of cryptocurrencies.”
DBP plans to utilise XTRD’s advanced trading technologies and FIX interface to facilitate trading across the entire cryptocurrency ecosystem. By leveraging XTRD’s low latency market data feeds and co-located facilities, along with a world-wide private internet network for high frequency order entry, DBP’s algorithmic execution strategies may benefit from arbitrage opportunities and provide additional value to DBP investors.
