Cohen’s venture capital fund Point72 Ventures leads $ 14million funding round for 24 Exchange, a Bermuda-based crypto and currency trading platform that wants to bring non-stop trading out of the world of digital currency in the stock market.
“The same people who trade cryptocurrencies started trading more stocks due to the GameStop movement and the overall retail involvement that [has] increased significantly, ”said Dmitri Galinov, founder and CEO of 24 Exchange. “If Elon Musk tweets something on Saturday, people will want to buy or sell Tesla stock. “
Trading sessions on the U.S. stock market start at 9:30 a.m. ET and end at 4 p.m. on weekdays, and extended trading allows investors to trade as early as 4 a.m. and until 8 p.m. can sometimes lead to sudden price fluctuations.
A record number of new, younger traders entered the market during the coronavirus pandemic to take advantage of the epic rebound in stocks. The retail craze reached a crescendo when a group of so-called memes stocks, including GameStop and AMC, soared in a massive contraction earlier this year. Online brokerage firms such as Robinhood, Fidelity, and Charles Schwab have all experienced rapid growth in the past year or so.
24 Exchange is also seeing strong demand for 24-hour trading among foreign investors.
“Overseas stock exchanges started listing US stocks and trading outside of US hours,” Galinov said. “It’s very clear to us that foreign investors are excited about Apple, Tesla and other big American companies. “
The company has filed a draft application with the United States Securities and Exchange Commission to approve 24-hour trading. Galinov said he expects a decision in the summer of 2022.
“We integrate vertically. We relay retail clients directly to the exchange, bypassing the broker. We are combining all of these asset classes into a wholesale system that will open up to retail and they will be able to benefit from low prices, ”said Galinov.
In the long term, the company has its eyes set on securitizing various digital assets that currently do not fall under the SEC domain, including crypto and non-fungible assets, or NFTs.