Bank of America has approved Bitcoin futures trading for some of its clients
Bank of America, the second-largest bank in the U.S., has approved Bitcoin (BTC) futures trading for some clients, according to two people with knowledge of the matter who spoke on condition of anonymity.
Like most institutions, the bank has been conservative in its approach to the cryptocurrency sector, but due to the large amount of margin required to trade futures, it is now allowing some clients to access the cryptocurrency market, one said. of the sources. Some clients are preparing to trade Bitcoin futures, and one or two may have already been activated, the other source said.
Several investment banks are reportedly allowing clients to invest in crypto products. In March, Goldman Sachs confirmed plans to relaunch its cryptocurrency trading desk after a three-year hiatus, and in May, the investment bank began buying and selling bitcoin futures in block trading through the Chicago Mercantile Exchange group. (CME), using Cumberland DRW as its business partner.
Bank of America will also use CME futures, according to one of the sources.
Bank of America declined to comment.
Earlier this month, it emerged that the Charlotte, North Carolina-based bank had created a team dedicated to researching cryptocurrencies and related technologies. In 2018, Bank of America prevented financial advisers and clients from trading Bitcoin-related investments, but that policy has now changed.
CME's bitcoin futures launched in 2017. In May, CME launched its “Micro Bitcoin” futures products in an attempt to capitalize on the bitcoin price rally.
Earlier this year, CME ranked first on the list of the largest bitcoin futures trading platforms, indicating a continued rise in institutional participation.
Total open interest in the bitcoin futures market stands at $ 11.3 billion, down 59% from its April 13 peak of $ 27.3 billion, according to Arcane Research.
