Kraken Launches ETH Dark Pool Trading
The global Bitcoin and digital asset exchange Kraken has announced it will be the first and only exchange enabling clients to use the (ETH) Dark Pool Trading. The Dark Pool allows users to “discreetly” place large trading orders without exposing the order book to the public.
Kraken Adds More Ethereum Support to it’s Exchange
Kraken has noticed that Ethereum has been on the rise lately both in value and trading volume. The exchange has offered dark pool trading before but CEO Jesse Powell said now was the perfect time to add an Ether Dark Pool to Kraken’s leading range of services for digital asset traders. The company says it’s hard not to notice the exponential trading activity Ethereum has brought to the industry. The exchange notes that Ether’s price has advanced by 10X in value over the course of 2016. CEO Jesse Powell states in the announcement:
“Kraken is proud to be the first exchange to provide clients with a Dark Pool for Ether, a strategic option for professional traders. This year, trading volume for ether has dramatically increased on Kraken’s exchange, and we developed the Ether Dark Pool to bridge the gap between our lit order books and over-the-counter desk,”
Customers on the exchange will now be able to view up to six Ether dark pool currency pairs, with the option to exchange Ether for bitcoin (ETH/XBT.d), euro (ETH/EUR.d), United States Dollar (ETH/USD.d), Canadian dollar (ETH/CAD.d), pound sterling (ETH/GBP.d), and Japanese yen (ETH/JPY.d). Similar to Kraken’s initial dark pool trading the fees will be about 0.20% to 0.36% depending on the user’s volume.
Alongside this announcement Kraken has launched some “major enhancements” to its margin trading platform. The company has increased leverage opportunities for ETH/XBT (up from 2.5x to 4x) and the addition of support to three pairs: ETH/EUR, XBT/USD and ETH/USD, all with up to 3x leverage. Ethereum’s native token will also become a margin currency for the Kraken exchange. This means that clients can use their Ether holdings as collateral for this type of trading. Unfortunately, United States residents are unable to participate with the margin trading platform.
The news follows Krakens new position settlement feature that premiered on May 4th. Position settlement allows users to return advance money that is borrowed from margin trading. The service is free of charge and the company says it will eliminate large impact on those trading with this service. Powell explains the new trading vehicles saying:
“The details get technical but there are two important takeaways when it comes to dark pool and margin trading. If traders are looking to move large sizes without affecting the market, they trade dark on Kraken. If traders want to keep fewer assets on account and they want less exposure to funding delays, they trade with margin on Kraken. These services together with our OTC desk reflect the growing professionalism of our client base and our exchange.”
Kraken’s new enhancements should add more variety and borrowing power for its clientele. The company says it has a lot more to come as they have said in the past; 2016 will be the year of the Kraken. Bitcoinist will keep our readers informed of the firm’s latest services and features as the year continues.
What do you think about Kraken adding (ETH) Dark Pool Trading? Let us know in the comments below.
Images courtesy of Kraken and Pixabay