US financial services firm, EF Hutton, continues to take significant strides within the crypto space.
Its new trading platform is called the American Crypto Exchange (ACEx), with which it estimates it will bring at least two million new people into the crypto investment ecosystem.
HUTN (parent company of EF Hutton) CEO Christopher Daniels labels this the first institutional cryptocurrency exchange in the US. Also significant is the fact that “we believe this is the first cryptocurrency exchange in North America where a government – in this case, Arizona – is supporting the exchange with economic incentives and regulatory changes,” Daniels told Coin Rivet.
The news may come as a surprise given that the crypto market by volume is currently at a 10-month low after losing 80% of its value, but the reasoning here is that the “market for digital assets, including coins and tokens, has grown substantially” and the “trading volume is more than 12 times higher than it was in 2016”.
“Just so you know,” he told us, “the EF Hutton brand is widely known and respected in the USA, and many believe it will attract traditional investors who trust the firm’s powerful brand but have not yet invested in digital assets”. He also says that “this model, and EF Hutton’s sponsorship, is the reason the Arizona state government was comfortable with its involvement”.
He adds that ACEx is unique because it will provide up to $5 million of equity in ACEx, LLC to each of the first 250 members that join the exchange. “The ACEx is expected to have significant value when it commences trading.”
ACEx membership is not exclusive
Membership is available to any broker-dealer or investment advisor registered to do business in the United States. Unlike existing “cryptocurrency exchanges that seek to cut-out brokers and advisors, ACEx will be the only exchange that seeks to incorporate regulated firms as members and provide them with a share of the exchange economics”.
Daniels explains that ACEx is a “new model for exchanges, as all members are regulated brokers and/or advisors”m ant that “it expands the market by allowing individuals to deal with their own brokers and advisors”.
80 million ACEs
ACEx will issue 80 million ACE Tokens (ACEs) that members can then distribute to their clients.
“Each token will give a 20% discount on their trades executed on ACEx. Tokens will expire in three years. Clients will be able to buy or sell ACEs on ACEx. ACE Tokens will never expire.”
EF Hutton estimates that by January 2019, over two million investors will be linked to ACEx via 250 brokers and advisors.
“We anticipate that ACEx members will, in aggregate, have over 1,000 offices located throughout the US and many foreign countries and their client accounts will amount to over $45 billion,” it concludes.
EF Hutton recently launched subscription-based in-depth crypto movement reports to “help investors of all levels to invest their money in cryptocurrency better”, Daniels says. It has also unveiled initial coin offerings (ICOs) to raise $60 million to fund various of operations.
“Some people view EF Hutton’s extensive initiatives, including our research, ICOs and now ACEx, as a pivotal point in the cryptocurrency market,” Daniels claims.