Gain Capital re-announces it's rolling out Bitcoin trading, shares rise 15%
Shares of forex broker Gain Capital are up 15% in the pre-market today after the company released a statement reminding investors that it's continuing its rollout of Bitcoin trading.
The company launched Bitcoin trading today in Australia and Singapore. They use OTC derivatives or futures to simulate Bitcoin trading.
"For those who want exposure to Bitcoin, trading the cryptocurrency as a derivative with a regulated brokerage firm offers several key advantages over a Bitcoin exchange," said Glenn Stevens, Chief Executive Officer of Gain Capital in a statement. "We view these benefits as: competitive fees and margin rates, the ability to go long or short, enhanced price discovery via aggregated liquidity from multiple Bitcoin market makers and exchanges, and fast trade execution."
In early December, Gain announced Bitcoin trading via its City Index brand as part of a global rollout. The only news today is that it plans to expand to other cryptos, including Ethereum, as well.
All you need for a jump in the stock price in this environment is to say 'cryptocurrency', 'Bitcoin' or 'blockchain' in a press release. In Gain's defense, they're actually offering something that touches the Bitcoin mania. It makes you wonder why more listed-brokers aren't jumping on board.
I mean, what does FXCM have to lose at this point?
