Bank of America launches financial instruments on Bitcoin

Bank of America launches financial instruments on Bitcoin


The bank invests in cryptocurrencies, and recently it created a special group of cryptocurrency research.

However, not so long ago, the American banking giant criticized Bitcoin, calling it a slow, unstable and impractical crypto asset. In a report published in March, Bank of America claimed that it takes only $93 million of the capital to affect the price of BTC by 1%.

However, he agreed that BTC is the best investment in the last ten years.

Therefore, under pressure from customers, Bank of America joins other banks, such as Goldman Sachs, Wells Fargo and JPMorgan, which have also launched investment products focused on Bitcoin and cryptocurrencies.

Banks have also expressed interest in other crypto assets, such as the Ethereum (ETH) cryptocurrency, which has huge potential, according to an analysis by JPMorgan and Goldman Sachs banks.

Bank of America has not yet officially confirmed the launch of Bitcoin futures trading, which is reportedly tentatively starting inside the bank, but it’s a matter of time.

Goldman Sachs Bank and its Bitcoin Derivatives

Whether it’s JPMorgan or Goldman Sachs, major US banks are dancing to the tune of their clients, who are increasingly in demand for crypto. It is under the pressure of this demand that investment products focused on BTC and crypto assets are launched.

Thus, back in May, Goldman Sachs began offering its clients derivative instruments-contracts paid in cash, based on futures contracts on the Chicago Mercantile Exchange (CME) Group.

The ability to buy and sell Bitcoin futures at wholesale auctions in the CME Group through Cumberland DRW is designed to protect the bank from the volatility of the BTC price.

Max Minton, head of digital assets Asia-Pacific at Goldman Sachs, said:

“The institutional demand for cryptocurrencies continues to grow significantly. The new service opens the way for us to develop our nascent cryptocurrency opportunities with cash settlement.”

Like other banks, Goldman Sachs is becoming increasingly active in the crypto sector, announcing that it has conducted a round of investments that raised about $ 15 million for Coin Metrics, a cryptocurrency analysis company.

Bitcoin and crypto assets have gained some legitimacy from major investment banks, which have mostly seen a massive influx of institutional investors who are now buying BTC en masse.

The Bitcoin cryptocurrency, described a few years ago by the CEO of JPMorgan as a “fraud”, is now a very popular investment asset of these large American banks.