Tuesday, October 19, 2021

Bank of America Approves Bitcoin Futures, BTC Price Spikes

As a report has it, the Bank of America, one of the largest banking establishments in the world, has launched a service that gives some of its clients the ability to trade Bitcoin (BTC) Futures.

Two people who are close to the matter confirmed the new development to CoinDesk on condition of anonymity.

According to CoinDesk while relaying the account of one of the sources, the bank has been conservative in its approach to the crypto sector just like most institutions, but due to a large amount of margin required to trade the futures, it’s now giving some clients the access to the crypto market.

Read Also: Crypto Michael Outlines Critical Levels for Bitcoin (BTC), Ethereum (ETH), VeChain (VET)

Based on the account of the source according to the report, some clients are setting up to trade Bitcoin Futures, which are cash-settled, and one of the two may have gone live.

Investment Banks Are Growing Interest in Crypto Products

Investment banks across the world are now vastly experiencing a growing interest in rendering crypto services. A number of the banks are reportedly enabling their clients to invest in cryptocurrency products.

In March 2021, Goldman Sachs, an American multinational investment bank and financial services company headquartered in New York City, confirmed plans to relaunch its crypto trading desk following a 3-year hiatus. In May, the bank commenced the buying and selling of Bitcoin Futures in block trades through Chicago Mercantile Exchange (CME) Group, using Cumberland DRW as its trading partner.

According to one of the sources, as reported by CoinDesk, Bank of America will also be using CME futures. However, the investment bank has declined to comment in relation to the new development.

Read Also: Goldman Sachs: Ethereum Has the Potential to Overthrow Bitcoin as a Digital Store of Value

So far, the report has helped Bitcoin (BTC) in the market to make a slight recovery. Moments after the report went live, the price of the flagship cryptocurrency spiked by $1,000 from its intraday low of $31,000 to $32,000.

At the time of filing this report, BTC is trading at $32,152.23, with a relatively 2% price uptrend in the last 24 hours.


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Solomon Odunayo
Solomon Odunayo is a cryptocurrency journalist with over 3 years of experience in the crypto industry. He's sternly interested in covering developments of emerging and established blockchain projects.

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