European trading giant Flow Traders reports revenue bump thanks to crypto rally

Quick Take

  • Flow Traders, a leading market maker in ETPs, is building up its crypto trading activities
  • But crypto is still just a tiny fraction of its overall business, which traded more than €1.5 trillion in ETPs in 2020

Amsterdam-based Flow Traders, a leading liquidity provider in the global market for exchange-traded products (ETPs), has proclaimed itself Europe’s number one market maker in cryptocurrency ETPs after seeing a spike in revenues in the fourth quarter of 2020.

In recently published financial results, the firm’s chief trading officer Folkert Joling said crypto trading had a “positive effect” on the business in the fourth quarter.

The company’s crypto trading activities still represent just a tiny fraction of the overall business. A Flow spokesperson told The Block it had traded more than $500 million in crypto ETPs on exchange and more than $100 million in crypto ETPs through Request for Quote trading in 2020.  

By comparison, Flow traded more than €1.5 trillion in ETPs last year. Its overall net profit for the fourth quarter came in at €66.2 million, bringing net profit for the year to €464.5 million.

Market makers in the wider crypto market are also posting volumes that dwarf Flow’s crypto ETP business. The market maker B2C2, for example, regularly trades $1 billion over the counter (OTC) in a single day with institutional counterparties. 

But in the still-nascent market for crypto ETPs, Flow — which provides liquidity to 15 exchanges globally — appears to be positioning itself for growth.

“We have seen a considerable increase in volumes both on screen and OTC. This has been evident in both the underlying spot markets as well as for ETP,” said Michael Lie, head of digital asset trading at Flow.

Bitcoin’s recent bull run — which has seen its price top $52,000 — appears to have triggered a similar spike in volumes in the crypto ETP market.

Start your day with the most influential events and analysis happening across the digital asset ecosystem.

By signing-up you agree to our Terms of Service and Privacy Policy