Major growth in the trading of cryptocurrency assets, including during the Covid-19 pandemic, is driving demand for low latency access to the Amazon Cloud (AWS) in London from sophisticated institutional investors, operating in the derivatives market in particular.
Since the start of this year, 30 per cent of Avelacom clients already involved in crypto trading are now accessing AWS London and the global connectivity provider expects this to rise to 50 per cent within months.
Digital assets are characterised by high volumes traded across multiple regions, which now includes London as more crypto-exchanges and trading firms deploy their cloud-based infrastructure using London as a start-point. This represents a major shift in the firms trading these assets and further drives increased volumes in the asset class. For crypto-exchanges located in the Cloud, low latency connectivity between regions across Asia-Pacific and the US are already essential. As trading from London increases, low-latency access between all three regions becomes more important.
“Triangle arbitrage” – arbitrage strategies requiring trading with more than three exchanges – is particularly popular, requiring maximum network performance and the freedom to access exchanges across multiple clouds, data centres and global locations. It’s also noteworthy that bandwidth requirements are increasing, demonstrating further interest in this market from institutional traders.
To facilitate these requirements Avelacom has optimised its network capacity and routes to provide digital asset traders with the best-in-market low latency connections:
“Throughout the last few months we’ve seen high volumes across all asset classes, but the biggest growth continues to be in digital assets, now also reflected in London,” says Aleksey Larichev, CEO of Avelacom. “March was challenging because strategies couldn’t be adjusted quickly enough but now we’re seeing real growth again. We were pioneers in understanding the future importance of digital asset trading and the need for low latency connectivity, connecting quickly to new destinations and clouds such as in Dublin, Ashburn, Portland and Seattle. This infrastructure is facilitating all existing and new clients, particularly in London currently, as their digital assets trading needs escalate.”