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Institutional

Jane Street and Flow Traders are actively trading the top five cryptocurrencies for a new exchange-traded product

November 26, 2018, 12:23PM EDT

Jane Street Financial Ltd. and Flow Traders NV, two quantitative trading firms and liquidity providers, have become active traders of bitcoin, XRP, ether, bitcoin cash, and litecoin as authorized participants for the Amun Crypto ETP, according to a Bloomberg report. The Amun Crypto ETP designed to hold the underlying cryptocurrencies on which its value is based. This structure requires authorized participants — in this case, Jane Street and Flow Traders — to supply the ETP with cryptocurrencies if it grows and offload assets if it shrinks. The Amun Crypto ETP was announced on Nov. 16. Jane Street and Flow traders backed the product by purchasing a number of units of the product to provide initial liquidity, a process known as "seeding." To be sure, the firms did not provide equity capital to the firm behind the product. Both companies declined to disclose how much cryptocurrencies they are trading and how much money they have invested in Amun’s Crypto ETP. Currently, U.S. investors are unable to buy or sell the ETP, which is regulated by the SIX Swiss Exchange. (Source: Bloomberg Terminal)

This post has been updated to clarify Jane Street and Flow Traders' backing of Amun.

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