Plus500 hits record on crypto trades as Barclays mulls entry

Bloomberg

Plus500 Ltd., the brokerage for complex derivatives sold to retail investors, soared to the highest on record as demand for cryptocurrencies swelled, while British lender Barclays Plc signalled it may begin to trade in similar products.
Shares in Plus500 surged to the highest level since the Haifa-based firm first sold shares to the public in 2013, as revenue more than tripled amid “high levels of
interest” in products tied to cryptocurrencies, according to a statement. Barclays is looking at “how to engage” in the market for digital currencies, CEO Jes Staley told investors at the lender’s annual general meeting.
CEOs of the world’s biggest finance firms have struggled to decide whether the $417 billion market for unregulated virtual currencies is a profitable opportunity or a threat to the global financial system. While Staley signalled that his firm, home to one of Europe’s biggest investment banks, may handle some cryptocurrency trades for clients, he also flagged his caution. “It’s a real challenge for us,” Staley said. On one hand, the market is “innovative and we want to stay in the forefront of technological improvement in finance. On the other side, crypto can be used for activities that we want no part of.”
At Plus500, which deals in derivatives known as contracts for difference, or CFDs, first quarter sales jumped to $297.3 million in the same period from $77.5 million a year ago amid cryptocurrency interest and volatile markets.
The firm also reported a 228 percent increase in new customers in the quarter.