Bank of America, one of the largest banks in the United States, has provided bitcoin futures to a number of its customers. It can now be said that some customers of the second largest US bank have entered the digital currency market.
to the the report CoinDesk, two sources who asked not to be named, said that Bank of America, the second largest US bank, has made bitcoin futures trading possible for some of its customers.
One source said the bank, like most financial institutions, has been conservative in dealing with digital currencies, but has now allowed some of its customers access to the digital currency market due to the high margin required for futures trading. Margin refers to the amount that investors borrow from exchanges or financial institutions for future transactions.
Another unnamed source said that some customers are preparing for Bitcoin futures, which will be settled in cash, and one or two of them may have already started trading.
Also read: What is a Futures Contract? + Familiarity with Bitcoin futures
Reports indicate that a number of investment banks intend to allow their clients to invest in digital currency products.
Goldman Sachs announced in March that it plans to reopen its digital currency trading desk after a three-year hiatus. In May, the bank began trading Bitcoin futures in blockchain on the Chicago Mercantile Exchange (CME). Block trades are trades in which large volumes of securities are traded. Cumberland DRW was also Goldman Sachs’ trading partner.
One of these sources said that the US Bank of America will also use futures trading on the Chicago Mercantile Exchange. However, the bank declined to comment.
Earlier this month, it was revealed that the US Bank of America has set up a dedicated team to research digital currencies and related technologies. The bank banned financial advisors and clients from making bitcoin-related investments in 2018, but that policy has now changed.
Bitcoin futures traded on the Chicago Mercantile Exchange in 2017. The Chicago Mercantile Exchange launched a series of bitcoin futures called Micro Bitcoin in May this year in an effort to profit from bitcoin price growth.
The Chicago Mercantile Exchange topped the list of the largest bitcoin futures trading platforms earlier this year, indicating a steady increase in institutional partnerships.
Arcane Research data show that Bitcoin’s open interest volume is now about $ 11.3 billion, down 59 percent from its $ 27.3 billion high on April 13. had. Open futures are part of the remaining futures contracts that have not yet been settled.