Flowdesk Raises $50M Series B: Enhancing Grayscale Bitcoin ETF Liquidity

• Flowdesk Secures $50 Million in Series B Funding
• Investment to Enhance Flowdesk's Growth and Regulatory Coverage
• Significance of Liquidity in Attracting Institutional Inflows
• Flowdesk's Role as a Market Maker
• Related Topic: Increased Capital Flow from Existing Crypto Products to New Spot Bitcoin ETFs

Flowdesk Secures $50 Million in Series B Funding

Flowdesk, a prominent player in the crypto market, recently came into the limelight as a liquidity provider for Grayscale's Bitcoin$42,260 -0.64% exchange-traded fund (BTC ETF). It has successfully raised $50 million in a Series B investment round. This funding round was spearheaded by venture capital firm Cathay Innovation, with participation from Cathay Ledger Fund, Ripple, Eurazeo, ISAI, Speedinvest, and BPI.

Investment to Enhance Flowdesk's Growth and Regulatory Coverage

The firm intends to utilize the recently secured funds to enhance its over-the-counter (OTC) offering, onboard new employees, and extend its regulatory coverage in the U.S and Singapore. This strategic move was communicated through an official announcement released by the firm on Thursday.

Significance of Liquidity in Attracting Institutional Inflows

Following the eagerly anticipated approval of spot Bitcoin ETFs in the U.S, the substantial funding raised by Flowdesk underscores the importance of liquidity in such funds, projecting a significant attraction for the expected institutional inflows.

Flowdesk's Role as a Market Maker

In addition to its role as a liquidity provider for the Grayscale Bitcoin Trust (GBTC), Flowdesk also operates as a market maker for the euro-based stablecoin of Societe Generale, EUR CoinVertible (EURCV).

Related Topic: Increased Capital Flow from Existing Crypto Products to New Spot Bitcoin ETFs

JPMorgan has observed a substantial influx of capital from existing cryptocurrency products into new spot Bitcoin ETFs. This trend signifies a major shift in the investment strategies of institutional investors in the crypto market.

Edited by Jonathan Stoker