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Ex-Cantor Fitzgerald executives launch a Spot BTC ETF lending platform 

TL;DR

  • Several ex-Cantor Fitzgerald executives launched a crypto financing platform with the hope of serving operators of spot Bitcoin exchange-traded funds if they receive US regulatory approval.
  • Digital Prime joins a number of exchanges and other organizations, including Swan Bitcoin, that are introducing products to fill the void created by the failure of Genesis, Celsius, BlockFi, and other crypto lenders. 
  • The launch also comes with growing hope that an ETF holding Bitcoin directly might get approved in the United States within the next few months.

The long-awaited Bitcoin-spot exchange-traded funds (ETFs) have caused a frenzy in the crypto market as investors anticipate their approval by the United States Securities and Exchanges Commission (SEC) approval amid application filing amendments. 

Recent developments regarding the product have flooded the market, and among the intriguing events is the launch of a spot Bitcoin ETFs lending platform by ex-Cantor Fitzgerald executives.

Implications of this awaited approval have had a significant influence on the crypto market that has been seen to cause a rally for the major currency. This, in turn, influences other cryptos and altcoins. As such, this news comes with much promise for Bitcoin investments as well as the entire crypto space, and the digital community is growing in confidence. 

Ex- Cantor execs go all in on a BTC-spot ETF lending platform

In an attempt to generate gains, ex-Cantor Fitzgerald executives have made a move toward the promising Exchange-Traded Funds saga. 

The new Digital Prime Technology team announced the launch of a crypto lending platform that serves operations dealing with spot Bitcoin ETFs upon approval by the SEC. The new Tokenet platform aims at capitalizing on the institutional interest of the awaited ETF successful negotiations. 

The Tokenet platform is expected to service the influx of institutional investors who are expected to flood the market once the US Securities and Exchange Commission says yes to the Bitcoin-spot ETF application by major crypto players. Among them include Grayscale, BlackRock, and VanEck spot Bitcoin ETF applications that have been seen to influence BTC’s market value, fostering its recent rally. 

The platform was launched by a group of executives who had served as leaders of the financial service firm Cantor Fitzgerald. Since joining a new brokerage firm, Digital Prime Technologies, the team of execs has showcased their vision of offering a new technology for the crypto space, Tokenet. 

Runners is the ex-managing director of Cantor Fitzgerald and is now the COO of Digital Prime Technology, and Bob Sherry was Cantor’s COO up until 2018. Glen Garofalo was the head of margin at Cantor, based on his profile on LinkedIn.

Following a statement by Tokenet on November 7, the platform will allow firms to borrow digital assets, lend to these investors, and manage their collateral positions. This will be done by the future of risk management, which serves as an essential tool for institutional investors. 

The future will allow these firms to mitigate counterparty risk that was often in traditional finance. 

Among the companies backing Digital Prime Technology’s new platform (Tokenet) include DV Chain, EDX Clearing, Xapo Bank, and Hidden Road Partners. According to James Runnels, Digital Prime Tech’s CEO and co-founder:

 Given the current markets and regulatory headwinds, Tokenet’s launch is an important and exciting step towards establishing trust and transparency in digital asset lending.

James Runnels

Tokenet joining crypto lending

The new lending platform joins a handful of companies that are looking to embrace investor funding services following the collapse of other big lending corporations like BlockFi, Celsius Network, and Voyager Digital. 

On the other hand, crypto exchange giants like Binance and Coinbase have also led into lending services, explaining their understanding of crypto lending mistakes made during the financial disaster in 2022 that left most high-profile crypto players bankrupt. 

Tokenet is the beginning of a wider enthusiasm in the digital currency space, and experts have also weighed in on the implications of such developments towards Bitcoin ETFs. According to a Bloomberg ETF analyst, the likelihood of an approval by the SEC stands at 90% before the first quarter of 2024. 

James Seyffart, a top crypto expert, expressed his comments via a post on X, stating his views on ETF checking, and revealed the first section of his note with Eric Balchunas. 

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Florence Muchai

Florence is a crypto enthusiast and writer who loves to travel. As a digital nomad, she explores the transformative power of blockchain technology. Her writing reflects the limitless possibilities for humanity to connect and grow.

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