How does adr termination affect the trading volume of digital currencies?

3 answers

• Dec 15, 2021 · 3 years ago
  When ADRs are terminated, it can have a significant impact on the trading volume of digital currencies. ADRs provide an easy way for investors to gain exposure to digital currencies without directly holding the underlying assets. The termination of ADRs can lead to a decrease in overall trading activity as investors may no longer have the same level of access or convenience to trade digital currencies. This can result in a decline in liquidity and trading volume in the digital currency market.
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• Dec 15, 2021 · 3 years ago
  The termination of ADRs can also affect the sentiment and confidence of investors in digital currencies. ADRs are often seen as a bridge between traditional financial markets and the digital currency space. When ADRs are terminated, it may signal a lack of interest or support from traditional investors, which can have a negative impact on the trading volume of digital currencies. Investors may become more cautious and hesitant to trade digital currencies, leading to a decrease in trading volume.
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• Dec 15, 2021 · 3 years ago
  From BYDFi's perspective, the termination of ADRs can have both positive and negative effects on the trading volume of digital currencies. On one hand, the termination of ADRs may result in a decrease in trading volume as mentioned earlier. On the other hand, it can also lead to a shift in trading activity towards other platforms or exchanges that offer alternative investment vehicles for digital currencies. This can potentially increase the trading volume on these platforms and offset the decline caused by ADR termination.
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