Crypto Trading Takes a ‘Few Steps Back’ After Jane Street, Jump Retreat
- Liquidity dropping off with retrenchment by Jane Street, Jump
- Market makers’ pullback is ‘bad for the industry,’ trader says
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First the crypto lenders imploded, then the industry’s second-largest exchange collapsed. Next to go were the crypto-friendly banks. In the latest blow, major trading firms — the players responsible for the market’s plumbing — are now retrenching.
As Jane Street Group, Jump Trading and other major firms pull back from crypto trading in the US amid heightened regulatory scrutiny, the market is quickly becoming less liquid, less mainstream and less attractive to institutional investors. That’s leaving the new landscape of digital-asset trading looking a lot like the crypto industry of the not-too-distant past: funkier, scrappier, riskier.