March 28, 2024

Bank of America started trading bitcoin futures

Bank of America started trading bitcoin futures

The list of banks working with cryptocurrency derivatives has been expanded by Bank of America, which has begun clearing bitcoin futures.

According to CoinDesk, American financialThe conglomerate has offered some clients to trade bitcoin futures with cash. Perhaps a few have even started working with derivatives already.

According to sources of the publication, this bank will conduct clearing contracts of the Chicago Mercantile Exchange (CME).

Bank of America's intention to open clients' access to crypto derivatives is caused by growing interest in them from outsidebig players from Wall Street. Since the beginning of the year, several other US investment banks, including Goldman Sachs and Morgan Stanley, have also begun providing similar services.

For financial institutions, clearing futures on an exchange is no different from trading any other cash-settled product.

The Bank of America Initiative kicked off duringthe decline in the crypto market observed in recent months. The negative dynamics was reflected in the demand for derivatives based on bitcoin. Over the past three months, aggregate open interest in the futures markets has dropped from $ 27.6 billion to $ 11.8 billion, according to The Block.

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