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- Bitcoin futures trading services are now available for some Bank of America clients
- The news was revealed by a couple of spokespeople from the bank on a condition of anonymity
- BofA is conservative in its approach to the crypto sector, still, it has to allow such services due to high demand from clients
- Previously the bank used to restrict crypto-related investment, but now it has to change its policies
- Bank of America will be using Chicago Mercantile Exchange (CME) futures trading platform
Bitcoin futures options help investors gain exposure to the coin without holding it. Investment banks like Morgan Stanley have announced earlier this year for offering such trading services to their qualified clients. Recently, Bank of America (BofA), which is the second-largest bank in the United States, has approved such services for some of its clients. Two spokesmen from the bank with knowledge about the matter have revealed the news on the condition of anonymity.
Why is Bank of America offering Bitcoin futures options?
In the current scenario, many financial institutions are conservative in their approach to the crypto sector. Similarly, Bank of America is also observed as being conservative. However, the spokesmen explained that due to a large amount of margin required to trade the futures, it has now enabled access to the crypto market to some of its clients.
According to one of the sources, some clients are setting up to trade Bitcoin futures. Notably, these clients are cash-settled, and maybe a couple of the clients are already living.
Bank of America changed its policies
According to one of the spokesmen, Bank of America will be using Chicago Mercantile Exchange (CME) futures. In 2018, BofA blocked financial advisors and clients from trading digital currencies. Moreover, such clients were also restricted from investing in related financial instruments.
However, the bank has now changed its policies of restrictions. And few of its clients are now allowed to trade such highly speculative assets. On the other hand, earlier this month, it emerged that the bank had created a team dedicated to research virtual assets and related technologies.
Investment banks allowing top invest in crypto
Since the beginning of this year, the crypto industry has seen mainstream attention. So naturally, high gains are one of the prominent reasons for traction. However, seeing the scenario, the demand for these assets has surged tremendously. And a number of investment banks began to allow their customers to invest in such high volatile assets.
Earlier this month, Morgan Stanley announced plans to offer such trading services to its clients. However, the bank clarified that the benefits would be provided to only some of its qualified investors.
Later in March, Goldman Sachs announced plans of relaunching its digital currency trading desk. Indeed, the bank had reopened its trading desk after a three-year hiatus. Notably, in May, the bank also began trading Bitcoin futures in block trades via CME. In addition, the bank had used Cumberland DRW as its trading partner.
CME is the leading crypto futures trading platform
In 2017, CME introduced Bitcoin futures. Therefore, it is also noteworthy that the exchange platform has taken the primary spot on the list of the most prominent Bitcoin futures trading platforms at the beginning of this year. Moreover, the exchange indicated a continued rise in institutional participants.
In May, CME launched its Micro Bitcoin Futures product. The attempt was made to capitalize on the BTC bullish rally. According to Arcane Research, the total open interest in the BTC futures market is sitting at $11.3 billion. Still, the figure is down by 59% from April 13 peak.
