The 24X National Exchange has filed an application with US regulators.
The aim is to launch a securities exchange. This could potentially enable 24-hour trading of cryptocurrency exchange-traded funds (ETFs).
24X National Exchange filed the application on August 27. This could shake up the crypto-ETF market in the United States.
Extended Trading Hours for Crypto-ETFs
If 24X’s application is approved, the exchange would propose to significantly extend trading hours. This concerns securities listed in the USA.
Indeed, it would increase to 23 hours a day, 7 days a week, 365 days a year. This includes public holidays.
Moreover, ETFs on the Nasdaq-100, S&P 500, Russell 2000 indices and the top 50 ETFs by average daily volume could be eligible for trading on the 24X exchange during extended trading hours.
The 24-hour opening of crypto-ETFs could offer several benefits to investors. The first would be increased access. Investors could have the opportunity to react more quickly to market events and seize new opportunities.
The second would be improved liquidity. A longer open market could increase the liquidity of crypto-ETFs. This in turn could help reduce volatility.
The final benefit would be convergence with traditional markets. This initiative could bring the crypto-ETF market closer to traditional markets. This could facilitate its adoption by institutional investors.
Furthermore, the 24X Exchange application represents an important step in the evolution of the crypto-ETF market in the United States. If approved, it could pave the way for further innovation and wider adoption of these financial products.
Nevertheless, the Securities and Exchange Commission (SEC) has yet to approve the proposal. Public comments focused on two key issues.
These are the management of trading pauses and stress testing during an extended trading session.
Crypto-ETFs: Popular Products
Crypto-ETFs have become increasingly popular with investors. The latter are keen to gain exposure to cryptocurrencies without having to manage the associated risks directly. Among the most popular crypto-ETFs are the iShares Bitcoin Trust (IBIT) and the ProShares Bitcoin Strategy ETF (BITO).
By extending the trading hours of crypto-ETFs, investors would gain in flexibility. This would be of particular interest to investors with non-standard hours.
Financial technology company DriveWealth has expressed its support for 24X Exchange’s application. It underlines the potential benefits of this initiative.
Indeed, this solution is particularly interesting for investors in this type of cryptocurrency.
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