• Bitcoin futures are now being cleared by Bank of America

  • Bank of America has become a participant in the bitcoin futures market.

    According to two sources, the bank is clearing cash-settled bitcoin futures, a form of instrument that settles in US dollars rather than bitcoin.

    The news isn’t entirely unexpected; clearing cash-settled futures on an exchange like CME is akin to trading any other cash-settled asset.

    Nonetheless, the report shows that Wall Street is warming up to bitcoin. As previously reported by CNBC, Goldman Sachs has reopened its own cryptocurrency trading operation, allowing clients exposure to bitcoin futures through trading partners such as Galaxy Digital. Goldman Sachs and Morgan Stanley have both revealed plans to provide bitcoin-related products to a select group of their private wealth clientele.

    Supporting bitcoin futures would not be BofA’s first venture into the industry. The bank has formed a new research team dedicated to covering the crypto sector, as previously reported by us. The new section is overseen by Alkesh Shah, who joined the bank in 2013.

    Along with the price of cryptocurrencies, the bitcoin futures market has cooled in recent months. According to The Block’s Data Dashboard, total open interest in bitcoin futures markets is $11.8 billion, down from a high of $27.6 billion in April.

    What's your reaction?
    Happy0
    Lol0
    Wow0
    Wtf0
    Sad0
    Angry0
    Rip0