Bitcoin investors do not rely on regular exchanges like the rest of the world does. Large-scale investors who want to be part of the bitcoin ecosystem often engage in OTC trading. Several companies and platforms facilitate such trades, which is why bitcoin is slowly gaining some mainstream traction. Now that OKCoin is shutting down its OTC trading market, it is good to have a list of alternative solutions.
It would appear a lot of people have forgotten there is an official Bitcoin-OTC trading network hosted on various IRC channels. The Freenode IRC network has multiple bitcoin OTC trading rooms, depending on the region one wants to perform these trades in. Although this solution is less convenient compared to a web-based interface, the Bitcoin-OTC project should not be overlooked by any means. The project is also hosted on the GitHub repository, which makes it well worth checking out.
3. Bitcoin Investment Trust
The GBTC – or Bitcoin Investment Trust – is one of the few publicly traded stocks with a direct correlation to bitcoin. Investors who want to benefit from bitcoin price volatility without actually owning the popular cryptocurrency often find their way to GBTC, as it provides an easy gateway into the world of cryptocurrency. Its shares can be found on the OTC Markets platform, where they generate quite a bit of volume every single day.
One thing to keep in mind when buying GBTC shares is how the company projects the bitcoin price to be much higher than it actually is. As more investors purchase shares, the “projected” bitcoin price continues to go up, which may ultimately affect the global market average for BTC. Now that the SEC continues to reject bitcoin ETFs, GBTC is the closest solution traditional investors have to gain access to bitcoin.
2. Genesis Global Trading
Most bitcoin users are familiar with the Genesis Global Trading platform, as the company has been around for quite some time. Genesis Global Trading focuses on digital currency trading, as well as auction-rate securities. The company supports transactions based in bitcoin, Ethereum Classic, Ether, and Ripple. Moreover, the company lowers costs for investors by supplying competitive OTC trading bids.
ItBit is one of the market leaders when it comes to bitcoin OTC trading these days. The company has an official agency trading desk for anyone who is looking to buy or sell large quantities of cryptocurrency, assuming the quantity equals at least 100 bitcoins. Users will gain access to personal trading support and a network with clients in several dozen countries, all of whom can provide the necessary liquidity to execute the OTC trades.
Moreover, ItBit prides itself on settling the vast majority of bitcoin OTC trades on the same day. Investors will also appreciate the low fees associated with this process, as the company charges a flat fee of 01% per transaction. It is good to see bitcoin exchanges provide such an OTC trading capacity to investors all over the world. There is a growing demand to settle large-scale bitcoin trades without disrupting exchanges’ order books.
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