The mainstream adoption of cryptocurrencies has been a hot topic of discussion over the past few years and as regulators inch closer to allowing institutions to offer direct crypto investments, many members of the crypto community have been let wondering as to what can be done to boost the adoption and accessibility of cryptocurrencies to retail investors and traders.Â
One way to increase crypto inclusion, financial institutions, such as brokerage firms, can play a major role in a few key ways, which also benefits them in a growing crypto market.
Brokerage firms and crypto adoption
Major online brokerage firms, such as XM, can greatly affect the access to cryptocurrency investments for retail traders and investors.Â
For instance, XM and other forex brokers can introduce more crypto-related instruments for investment, such as CFDs, crypto ETFs, as well as direct spot crypto trading and investment.
While this may be difficult and time consuming to integrate, XM already offers such investments via its Ultra-Low account.
For instance, traders can buy and sell CFDs and futures of Bitcoin, Ethereum, and other major cryptocurrencies.
We will discuss other ways by which brokers can increase the appeal of crypto investments and offer them to a wider audience of traders in more detail below.
Lower commissions and spreads
For FX brokers to increase the appeal of crypto investments to their international audience of traders, they could opt to offer lower spreads and trading commissions on these instruments, which may include CFDs, as well as spot trading of cryptocurrencies.
Brokers typically compete on the basis of spreads and whoever manages to offer the lowest spreads holds the advantage. Therefore, offering the most attractive trading terms on crypto could greatly boost the interest of market participants towards the asset class.
Offering spot investments
The approval of Bitcoin ETFs has been a major piece of news for the crypto world and the brokers who offer these funds to their clients with the most favorable terms are likely to reap the most benefits from this regulatory change.Â
Being able to invest in ETFs that hold the actual cryptocurrencies, as opposed to CFDs and other derivative products gives investors more reasons to add crypto to their portfolio.
The global crypto market has met the news of spot ETFs with a boom, which has seen some major currencies reach their all-time highs after the news. This has rekindled the conversation surrounding the mainstream adoption of crypto and its future prospects both as a store of value and as a medium of exchange.
Well-established brokers can take advantage of this opportunity on the market and race to acquire the rights to offer spot crypto investments, which would also greatly boost their popularity among investors worldwide.
Promotional campaigns
Brokers can allocate some funds on promoting their crypto offerings, which may include CFDs, futures, or spot ETFs, as well as options chains and other crypto-related instruments.
Promotional campaigns can introduce existing clients to new products, while also targeting prospective clients that could be interested in having access to multiple asset classes via their brokerage accounts.
Brokers can use various crypto channels and communities to promote the coins that they offer, as well as the general terms and spreads that apply to trading them.
Future prospects of crypto adoption and the role of financial brokers
As spot ETFs become mainstream and more and more people around the world invest in them, FX and stock brokers will have to compete on the variety of suh investments they can offer at competitive spreads and favorable terms.
Brokers can take advantage of growing opportunities by keeping track of market developments and acting quickly when it comes to making new investment products available on their platforms.
Financial brokers play an important role as middlemen between the investors and the market, which is why it is crucial for them to offer the best possible terms on crypto investments in order to increase the engagement from clients that are otherwise less inclined to follow the crypto market and track industry updates.
