Bank of America (BofA) on founded trade in Bitcoin futures for some of its customers.
Despite the fact a rather conservative approach to cryptocurrencies, The second largest bank in the United States has now given the green light to some of its customers access to such digital assets because of the margin required for future trading.
While some of the bank’s customers are now setting up Bitcoin futures accounts that are paid in cash, one or two customers have already started trading.
In 2018, BofA used to prevent its clients and financial advisors from trading in Bitcoin-related investments, but this practice has now changed. The bank uses CME futures, which were established in 2017 and have become one of the largest Bitcoin futures trading venues.
The bank has been wary of cryptographic assets for some time. In March, one of the bank’s analysts said Bitcoin’s cryptocurrency has not been mandatory as a hedge against inflation.
However, earlier this month, BofA set up a new group to study cryptocurrencies. According to an internal memorandum dated July 8, the bank set up an encryption research team to investigate institutional interest in cryptographic identifiers.
“Encryption currencies and digital assets are one of the fastest growing emerging technology ecosystems,” Candace Browning, director of BofA Global Research, addressed a memo to employees and partners in the Merrill Lynch Wealth Management division of Bank of America.
Wall Street banks are embracing Bitcoin
Wall Street banks are under pressure to accept Bitco as an acceptable asset class. Leading U.S. banks are embracing Bitcoin, a significant stamp of legitimacy for the emerging asset class.
In March, Goldman Sachs restarts its Bitcoin outlet after a three-year hiatus and began offering its customers Bitcoin futures and non-delivery futures. The bank’s decision to re-launch the cryptocurrency point as institutional interest in Bitcoin continues to grow.
In March, Morgan Stanley Investment Bank fire the first major U.S. financial institution to allow wealthy executives to access Bitcoin funds.
JPMorgan Chase also announced in April that it is preparing to allow some of its clients to invest in actively managed cryptographic funds.
Then, in early May, cryptographic custody company NYDIG partnered with Fintech giant Fidelity National Information Services to allow U.S. banks to provide Bitcoin trading services to their customers. Hundreds of banks participate in the program so customers can buy, hold and sell Bitcoin through their existing accounts.
May 18 Wells Fargo, the fourth largest bank in the United States, announced that it brings professionally managed cryptographic assets to wealthier clients. The bank said the risks associated with cryptocurrencies meant it favored “qualified investors”.
Banks are now trying to trade Bitcoin services because they see their customers sending dollars to Kraken, Coin baseand other encryption changes.
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