Earlier today, Jenna Wright, Managing Director of LMAX Digital, recently participated in a Fireside Chat with James Harris, Chief Commercial Officer at Zodia Custody. This was at CCData’s annual flagship crypto conference — CCDAS — which is held in London, UK.
Wright offered an in-depth look at LMAX Digital’s journey, market trends, regulatory challenges, and her outlook on the future of the cryptocurrency industry, including a $100K Bitcoin price prediction.
LMAX Digital’s Milestones
Wright began by introducing LMAX Digital, a spot cryptocurrency exchange that is part of the LMAX Group. The company has been operating in the foreign exchange market since 2010 and launched its institutional-only crypto venue in 2018. She highlighted the company’s focus on operating in a regulated environment, similar to their foreign exchange operations. Wright also revealed that LMAX Digital has onboarded 755 institutions over the last five and a half years and has traded over a trillion dollars in crypto, which equates to 37 million Bitcoin equivalent.
Market Trends and Developments
When discussing significant market developments, Wright acknowledged the impact of various events on institutional adoption. She noted that market cycles are not a concern for LMAX Digital, as they are used to cyclical trends in capital markets. The company has used quieter periods to refine its operational setup.
Wright also discussed the concentration of risk in the crypto industry, where trading platforms, custodians, and other entities often perform multiple roles. She argued that the future would likely see a separation of these functions, making it easier for real money asset managers to participate in the market.
Wright touched on the regulatory environment in various jurisdictions. She found Singapore particularly exciting due to its progressive regulatory approach and the interest from tier-one banks. She also mentioned ongoing preparations for upcoming regulations in Europe and expressed optimism about the UK potentially establishing a regulatory framework for digital assets.
The U.S. Market and $100K Bitcoin Prediction
Discussing the U.S. market, Wright described the regulatory landscape as challenging but emphasized the country’s importance due to its significant share of global assets. She believes that the approval of a spot Bitcoin ETF would be a catalyst for institutional adoption, although she doesn’t expect immediate price surges. Wright also made a notable prediction, stating that while the approval of a Bitcoin ETF might not immediately lead to a $100K Bitcoin price, it could be a contributing factor over a 12 to 24-month period.
Looking ahead, Wright expects a bull market but doesn’t think that ETF approvals will be the sole trigger. She emphasized the need for credit intermediation in the crypto market, similar to what exists in the foreign exchange market. Wright also noted that LMAX Digital is focused on pragmatic positioning and is encouraged by the emergence of entities that can intermediate credit.