America’s Second Largest Bank Opens Bitcoin Futures Trading

Second largest U.S. bank, Bank of America, opens Bitcoin futures trading as the bank reportedly allows its customers to invest in the Bitcoin futures market. A recent report from Coindesk shows that many investors are setting up their Bitcoin futures trading accounts.

America’s second largest bank opens Bitcoin futures trading

The Federal Reserve has begun allowing some customers to trade Bitcoin futures, two anonymous sources familiar with the matter told reporters at Coindesk.

Futures trading has become an important part of institutional involvement in cryptocurrencies. Due to regulatory issues, large institutional investors may not want to hold Bitcoin directly. Instead, Bitcoin futures offer institutions exposure to Bitcoin and other cryptocurrencies without holding the underlying assets.

Interest in Bitcoin futures is growing. In the past 2 months, the trading volume of Bitcoin futures on the Chicago Mercantile Exchange (CME) has grown from $ 910,000 to over $ 23 million.

US banking giant Bank of America has also announced a crypto research team to be tasked with studying various crypto payment technologies. The banking giant is warming up for the digital asset market after maintaining a regressive stance for a long time. In early 2018, Bank of America blocked its clients and financial advisors from investing in cryptocurrencies.

Another source familiar with the matter suggested the bank would use CME futures for its clients. CME is one of the leading bitcoin derivatives markets for institutional traders and is considered the leading bitcoin futures market.

The US Federal Reserve will follow in the footsteps of Goldman Sachs, which will start trading Bitcoin futures through CME from May. According to one of the anonymous sources, the US Federal Reserve will also use CME for trading.

The US isn’t the only country experiencing a boom in Bitcoin futures trading. Singapore-based exchange Bybit has also seen record trading volumes in Bitcoin futures, exceeding $ 4.2 billion in May.

Despite the market downturn, Bitcoin futures are still in high demand. If institutional interest remains high, expect more banks to offer Bitcoin futures to their customers soon.

America’s second largest bank opens bitcoin futures trading – US financial institutions continue to accept bitcoin

Many US banking giants changed their stance on Bitcoin as it began to attract wealthy institutional clients. Many former critics, including JP Morgan and Goldman Sachs, have started offering Bitcoin investment products in the face of growing customer demand.

JP Morgan still doesn’t see a great future for Bitcoin, but the incredible demand for the leading cryptocurrency has forced it to offer it to its customers. Similarly, Goldman Sachs doesn’t view Bitcoin as an asset class, instead placing it at the top of its list of best assets this year. They have also reopened their crypto trading desk as customer demand increases.

The demand for the leading cryptocurrency has not decreased even after the price was halved. The growing interest of institutions could also pave the way for better regulation around the crypto market. Institutional and wealthy clients have previously shied away from the crypto market, viewed by many as a bubble, calling it too volatile to be an asset to invest in. However, this bull season has changed that factor and now institutions are rushing to add bitcoin and crypto to their portfolios.

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