Technology
Traders Look to Bitcoin ETFs to Patch ‘Alameda Gap’ in Crypto Market
- Digital-asset market makers expect improving liquidity in 2024
- Value of tokens changing hands hit a 19-month high in January
This article is for subscribers only.
The era of US spot Bitcoin exchange-traded funds is a chance to repair the decay in crypto markets caused by the collapse of the FTX exchange and its sister hedge fund Alameda Research, according to market makers.
The implosion of the two former linchpins of digital assets in late 2022, after a rout in token prices and a huge fraud, left an “Alameda gap” in crypto trading of stunted volumes alongside a reduced capacity to absorb orders smoothly.