Coincheck, a Japanese crypto exchange, is preparing to offer Ethereum or XRP to institutional investors. However, it just launched OTC trading for the assets after the debut a similar Bitcoin OTC.
OTC trading allows deep-pocketed investors to trade large amounts at a fixed price and without having to worry about price fluctuations. Coincheck currently limits OTC Bitcoin investors to trading at a minimum of 20 BTC. The recommended trading amount can be as high as $225 BTC. This is approximately $1.15 million as of the date of publication.
For Ethereum and XRP the minimum OTC trade is 500 ETH. This amounts to about $82,500, and 250,000XRP approximately $81,600. Cumberland reports that a cryptocurrency market maker has attributed the sudden rise in Bitcoin’s price above $5,000 on April 2 to the OTC trading surge, which was worth more than $4.9million each.
Cumberland identified 13 orders totaling at least 1,000 BTC that were each traded within an hour after midnight.
