The crypto and the traditional financial markets are quite segregated for a
participant attempting to cross over or move their capital from one market to the
other. The segregation is a result of large transaction costs, time and money.
These costs sometimes lead to the eradication of profits, and in some cases
lead to losses, which restricts investors from participating in the market.
Furthermore, Market participants are always searching for ways to diversify
their funds, along with rebalancing them to reach an ideal allocation of assets
that fits their risk appetite. Given the lack of connection between crypto and the
traditional markets, participants are either unable to move funds between
different markets in a reasonable timespan or are restricted by the costs
associated to do so.
The current crossover mechanism is also inefficient in terms of availability and
transparency as it is only available 5 days a week and execution can take from
hours to days depending on different factors, such as liquidity, day of execution,
time of execution throughout the day, type of order and size of trade.