Bitcoin News: Bank of America, the second largest bank in the US, has started allowing certain customers to trade Bitcoin futures. This move represents another step into the crypto space for financial services.
Bitcoin move from Bank of America
According to Coindesk; Charlotte, North Carolina-based bank will use Bitcoin futures through CME Group. CME’s Bitcoin futures contract is a cash-settled US dollar contract based on the CME CF Bitcoin Reference Rate (BRR), which serves as the reference rate of the US dollar price of Bitcoin.
Futures transactions allowed by Bank of America do not actually involve trading with Bitcoin.
David Tawil, head of ProChain Capital, told Blockworks that the move shows Bank of America is trying to keep up with Goldman Sachs.
They followed Goldman Sachs
A month ago, Goldman unveiled a digital asset strategy that includes offering Bitcoin derivatives to customers and opening a dedicated trading desk for the cryptocurrency.
The news comes nearly a week after Bank of America planned to begin research coverage on cryptocurrencies and digital assets. Candace Browning, the firm’s head of global research, described the space as “one of the fastest growing emerging technology ecosystems” in a note to colleagues.
Tawil stated that he does not expect Bank of America to be the leader among its peers, adding that from the bank’s point of view there is a lot to lose and there is not much to gain in this area yet.
“I expect traditional Wall Street to try to get creative with how to leverage crypto without getting head-to-head. They are more likely to be challenged rather than take the initiative.”