Bank of America (BoA), the 2nd largest bank in the United States, has reportedly approved the trading of Bitcoin Futures for some clients. One of the two sources, on the condition of anonymity, said that BoA had a conservative approach towards the cryptocurrency sector.
However, due to the requirement of a large amount of margin for trading the futures, some wealthy clients have been already been allowed to access the cryptocurrency market. The second source also reportedly said that some clients of Bank of America have started to trade bitcoin futures, which are essentially fiat currency settled (which means cash-settled).
Bank of America’s move comes after many investment banks allowed their clients to invest in cryptocurrency products. One of the major investment banks that took cryptos seriously is Goldman Sachs, the leading competitor of BoA. It confirmed plans of relaunching its crypto trading desk recently after a hiatus of 3-years. Goldman Sachs started buying and selling BTC futures in block trades by using Cumberland DRW as its trading partner through Chicago Mercantile Exchange (CME) Group. Reports say that Bank of America will also use CME futures.
BoA has created a new team dedicated to the cryptocurrency market solely. The future BTC CME cartonnent is worth 0.1 BTC each. Even the modest stock market players can also gain exposure to Bitcoin by trading the new mini-futures, the classic 5 BTC CME contracts, which were released in May 2021.
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