Bitpanda Debut Commodities Trading For Customers
- Austrian trading platform Bitpanda has decided to offer commodities trading services to its users after expanding its asset offerings over the past few years to stocks, ETFs, and precious metals.
- The exchange now provides users with 24/7 access to trading commodities like natural gas, aluminum, oil, and wheat.
Austrian trading platform Bitpanda, which has expanded its asset offerings over the past few years to stocks, ETFs, and precious metals, has decided to offer commodities trading services to its users.
A recent announcement by the company reveals that the exchange now provides users with 24/7 access to trading commodities like natural gas, aluminum, oil, and wheat. This will allow them to benefit from the short-term price movements of such commodities.
Bitpanda users can now buy, sell, or swap commodities similar to any other digital asset on the exchange platform.
The update comes at a time when European commodity prices are witnessing a major price swing brought on by the ongoing war between Russia and Ukraine. Moreover, among other important factors influencing the pricing are those related to the COVID-19 epidemic and global inflation.
Commodities are an excellent method to diversify portfolios as historically, they have a tendency to move independently of bonds and stocks. They can also protect investors against inflation because as grocery prices rise, commodities prices rise as well.
Eric Demuth, Bitpanda’s co-founder and CEO, commented on the new announcement by stating:
“I’m excited we’ve been able to add commodities to the platform at a time when inflation is biting into people’s savings. Bitpanda customers can now bet against their gas bill and benefit from the short-term price movements of key commodities like oil, natural gas, corn, wheat, and many more.”
2014-launched Bitpanda aims to “remove the barriers to entry and enable people to access financial markets in a simple and secure way,” according to the CEO.
When users trade on the platform, Bitpanda doesn’t really buy or sell the commodities directly but instead uses contracts that allow exposure to commodities. These exchange-traded commodities (ETCs) monitor the value of corresponding commodities. It is important to note that Bitpanda currently offers exposure to 30 commodities.
There is a spread between the buy and sell price on Bitpanda, even though there are no commissions or management fees. This spread changes over time, and the platform generates revenue by adopting a similar strategy in stock trading.
The most recent development is a part of the company’s efforts to keep growing its trading platform. Notably, the trading platform already offers digitized versions of precious metals, including gold, silver, and platinum, under its portfolio.
Bitpanda introduced more than four cryptocurrency indices for investors in July, giving them more options and assisting with portfolio diversification. The company created the launches with the goal of making investments in various cryptocurrency projects, such as the metaverse, decentralized finance (DeFi), smart contracts, and infrastructure, simpler through the use of new automated crypto indices.
In 2021, Bitpanda raised more than $400 million to reach a valuation of $4.1 billion. Additionally, it introduced a white-label service so that other fintech applications and platforms could provide trading services via Bitpanda.