2018-9-13 18:25 |
Morgan Stanley is Planning to Offer Clients Bitcoin Trading Options
The investment and giant bank Morgan Stanley is planning to offer clients Bitcoin trade swaps. The information has been released by Bloomberg on September 13 quoting an anonymous source.
According to ‘people familiar with the matter’ Morgan Stanley will be offering ‘trading in complex derivatives’ that will be linked to Bitcoin. This decision is in line with other Wall Street firms that want to allow clients enter the cryptocurrency market.
Apparently, the bank will be dealing in contracts that give investors exposure to Bitcoin and its performance. The source asked not to be identified. In this way, investors will have the possibility to go short or long with price return swaps.
The bank could start to offer this financial instrument very soon. However, it will take longer to release it to the market because there should be proven institutional client demand for it. Moreover, it will have to complete different internal processes.
There are many different banks in Wall Street that want to offer instruments for investors to have access to digital assets. In the last months, virtual currencies have been in a bear market that had negative effects in the community. The interest for virtual currencies has substantially decreased according to google trends.
Companies and financial institutions continue to create infrastructure in order to support more investors in the market. Goldman Sachs Group Inc. And Citigroup Inc. are also working in their own Bitcoin-related products.
Morgan Stanley is currently not planning to trade Bitcoin directly. That means that the swaps will be tied to Bitcoin futures contracts. This is in line with what James Gorman, CEO of the bank, said earlier this year. The bank would build a trading desk to support derivatives linked to digital assets.
The market seems to be taken this information in a very positive way. After days of continuous fall, Bitcoin is now being traded above $6500. The market capitalization of all the virtual currencies grew from $180 billion dollars to $200 billion in just some days.
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