Tower Research Capital Expands Crypto Market-Making Efforts
Tower Research Capital, a key player in the crypto market, is stepping up its game. It’s one of the “VIP” clients mentioned in the 2023 U.S. CFTC lawsuit against Binance.The firm is now allocating more capital to its crypto trading activities.
At the forefront of this expansion is Limestone trading. It’s now leading Tower’s market-making efforts in the digital asset space. Limestone also engages in arbitrage and spread trading across major global crypto exchanges.
This move is meaningful because Tower had previously scaled back its crypto activities. The 2022 collapse of FTX and Alameda Research caused market turmoil. However, with the market stabilizing and growing political support for cryptocurrencies, Tower is seizing the opportunity.
Rival Citadel Securities is also planning a return to crypto trading. This follows former President Trump’s endorsement of the industry.
The growing interest from institutions is clear. There’s a surge in ETF applications, which the U.S.SEC is struggling to process. Despite delays, Bloomberg analysts believe most ETFs have a high chance of approval.
This renewed interest in digital assets signals a positive shift in the crypto landscape. it shows that despite past challenges,the industry is recovering and attracting major players.
