Axi Witnesses Soaring Demand for Crypto CFDs!

Axi Witnesses Soaring Demand for Crypto CFDs!

The demand for cryptocurrencies among active traders has experienced a remarkable surge, as crypto contracts for differences (CFDs) at the retail broker Axi nearly doubled, reaching an impressive $12 billion in January. The brokerage processed about 70,000 crypto trades each week, highlighting the growing interest in digital assets among traders.

Throughout most of 2023, Axi handled crypto volumes ranging between $1 billion and $2 billion. However, in December, the volumes witnessed a dramatic spike, surging up to $6 billion. The sudden increase in crypto volumes on Axi appears to reflect the sentiment surrounding the anticipation and subsequent approval of spot Bitcoin exchange-traded funds (ETFs) in the United States.

Axi Witnesses Soaring Demand for Crypto CFDs

The highly volatile nature of Bitcoin’s price in recent months adds an intriguing layer to the story. Before the approval of 11 spot Bitcoin ETFs by the US regulator, the fiat value of Bitcoin touched $48,000. However, the rally proved short-lived, as the Bitcoin price dropped shortly after the official approval of the ETFs.

Axi, headquartered in Australia, exclusively offers crypto CFDs featuring “30 of the most popular cryptocurrencies,” including Bitcoin, Ethereum, Litecoin, Ripple, and Bitcoin Cash. These derivative instruments allow traders to take either long or short positions with the underlying digital assets.

Axi provides crypto CFDs under two entities, one regulated in Australia and the other incorporated and authorized by the regulator in St Vincent and the Grenadines. While the Australian unit offers leverage of up to 2:1, the offshore unit provides significantly higher leverage, reaching up to 200:1 as per the Axi website. The lower leverage under the Australian unit is a result of limitations introduced by the country’s financial services regulator in 2021.

It’s worth noting that the UK-regulated arm of Axi refrains from offering cryptocurrency CFDs, adhering to regulations that prohibit regulated brokers in the UK from providing such leveraged crypto instruments to retail traders. Axi also holds licenses in New Zealand and Dubai.

Despite the substantial increase in demand for crypto CFDs on Axi, this figure remains a fraction compared to the trading volumes on dedicated crypto spot and derivative exchanges. Major players like Binance, Bybit, and OKX processed significantly higher volumes in both crypto derivatives and spot trading within a 24-hour period.

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