Group Co.
EF Hutton Leads Group to Establish the American Cryptocurrency Exchange
Traders Magazine Online News, September 27, 2018
EF Hutton Inc. (“EF Hutton”), a unit of HUTN Inc., (OTC: HUTN), headquartered in Springfield, Ohio, is leading a group of financial service firms to establish the American Cryptocurrency Exchange (“ACEx”), a first of its kind membership exchange in North America. The ACEx is expected to commence trading of digital assets based on blockchain technology, such as tokens and virtual currencies similar to Bitcoin, by January 2019.
The market for digital assets, including coins and tokens, has grown substantially. Trading volume in cryptocurrencies is more than 12 times higher than it was in 2016. Globally, according to Price Waterhouse, more than $13 billion was raised through initial coin offerings (ICOs) in the first half of 2018, with the largest amount raised equal to $4 billion and an average amount raised of $25.5 million. The capital raised in ICOs in the first half was more than 40% of the entire amount raised by companies through traditional common stock IPOs and more than 30% of the capital raised from venture capital, according to Forbes Magazine. The United States has lost crypto market share to offshore marketplaces and ACEx is designed to attract customers who want the security of dealing with a trusted, domestic financial provider.
Only 2% of investors in the U.S. currently hold Bitcoin, the most widely-held a digital asset in their portfolio, according to a recent Bloomberg survey. However, investors seek security and better understanding before committing. ACEx is designed to alleviate concerns and, thereby, expand the market. All members must be registered financial services companies, brokers and/or advisors.
ACEx is sponsored by EF Hutton, a financial firm with an iconic brand and a 114-year legacy and extensively engaged in Fintech initiatives, including products and services utilizing blockchain technology. EF Hutton recently launched specialty research on Digital Assets including Coins and Tokens that is available to the public via subscription, see www.efhutton.com/crypto-research
ACEx is unique because it provides up to $5 million of equity in ACEx, LLC to each of the first 250 members that join the exchange. Issuance to members is to be exempt from registration under Rule 506(c). The ACEx is expected to have significant value when it commences trading. For reference, an exchange was funded last year by private equity investors at an $800 million valuation. Membership is open to any broker-dealer or investment advisor registered to do business in the United States. Existing Cryptocurrency exchanges seek to cut-out brokers and advisors, small and midsized brokers. ACEx will be the only exchange that seeks to incorporate regulated firms as members and provide them with a share of the exchange economics. Dozens of firms are in the process of becoming members of ACEx. ACEx is accepting membership applications at membership@acex.us.
For more information on related topics, visit the following channels:
Comments (0)