Public Com Holdings launches Bitcoin Crypto Trading

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Public.com will now allow more than one million retail investors to buy, sell and hold bitcoin. The neobroker founded in 2019 will add BTC and nine other cryptocurrencies to the list of investment vehicle offerings, in addition to US stocks and ETFs. It’s not clear how bitcoin custody will work for investors, but the feature likely won’t allow withdrawals, effectively functioning as an IOU.

Public.com, the investment platform operated by Public Holdings Inc., deploys bitcoin trading to more than one million customers, the Wall Street Journal reported. Retail investors who use the platform are now able to gain indirect exposure to bitcoin in addition to trading US stocks and exchange-traded funds (ETFs).

Cryptocurrencies have “really attracted a new generation of investors as an asset class,” said Stephen Sikes, COO of Public.com. “We also believe… that there is some validity in including crypto in a broadly diversified portfolio.”

The new feature will be rolled out gradually, starting October 7, for most Public.com users who will now be able to buy, sell and hold bitcoin and nine other cryptocurrencies. But New York residents will not be eligible to take advantage of the new feature at first, because the company’s service partner “does not yet have the required license in the state,” according to the WSJ.

Public.com was launched in 2019, offering individual investors the ability to trade US stocks and ETFs, unlike the large competing retail investor platform Robinhood which provides clients with options and margin trading vehicles.

Another aspect that differentiates competing companies is participation in the payment of order flow – a common practice of brokerage firms of “channeling customer orders to high-speed trading companies in exchange for payments,” according to the report. . Paying for Order Flow allows brokers to offer commission-free trades, but encourages high-frequency trades to maximize revenue.

Public.com includes social features on its platform that bring investors together to share ideas and follow each other. MaryAlexa Divver, chief product officer at Public.com, told the WSJ that the investment platform will also provide clients with educational content on Bitcoin and cryptocurrencies.

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