Flow Traders saw a strong first quarter with trading income jumping 75% from Q4 last year, driven by an uptick in digital assets activity.
“Flow Traders achieved a strong result in Q1 on the back of elevated trading activity in the digital assets space in the quarter, despite the relatively subdued market trading environment in other asset classes,” confirmed CEO Mike Kuehnel.
Currency, crypto and commodity values saw a 24% YoY increase from €340 trillion in Q1 2023 to €422 trillion in Q1 2024, and a 20% rise from Q4 2023’s €352 trillion. These significant increases are in part the result of spot Bitcoin ETF approval by the SEC in January, the firm explained.
In equities, value traded rose 8% over the quarter from €762 trillion to €819 trillion. A YoY decrease was seen, albeit a small one: Q1 2023’s €826 trillion reduced by 1% to Q1 2024’s €819 trillion.
In fixed income, a 7% quarterly decrease from €289 trillion to €270 trillion was recorded. YoY saw an almost 25% drop, however, from €348 trillion in Q1 2023.
Equities volatility declined slightly over Q1 2024 when compared to the previous quarter and remains “significantly below” last year’s levels, the firm stated. Similar reductions in volatility levels were seen on a QoQ and YoY basis in fixed income, it added.
The firm saw trading capital increase by 52% (84% annualised), and Kuehnel confirmed plans to bolster this yet further in 2024. “We believe we can accelerate the growth of the firm with additional trading capital,” he said in a statement.
Flow Traders has also been enhancing its trading capabilities and counterparty network in existing areas as well as exploring new potential opportunities, said the CEO.
Kuehnel went on to discuss the company’s ongoing strategic investments, including the AllUnity initiative to launch a Euro-denominated stablecoin, conducted in partnership with DWS and Galaxy Digital, and a Q1 investment in ClearToken to support connectivity and financial market infrastructure.
The company has recently appointed Owain Lloyd as chief technology officer, effective 1 May. He will later be nominated as an executive director of the board at the June AGM.
Looking ahead, Kuehnel concluded: “As we continue to execute our growth and diversification strategy and invest in trading capabilities in different asset classes and regions, we believe we can accelerate the growth of the firm with additional trading capital and will look to bolster our trading capital.”
©Markets Media Europe 2024
