Morgan Stanley to offer cryptocurrency derivative trading
One of the largest US financial institutions, Morgan Stanley is launching Bitcoin swap trading to its clients, according to a Bloomberg report. As institutional investments in cryptocurrencies are spiking, Morgan Stanley also seems to be getting a piece of the cryptocurrency trading. Morgan Stanley’s interest in offering a cryptocurrency product is in the wake of Citigroup and Goldman Sachs announcing their own cryptocurrency products in the market.
“The U.S. bank will deal in contracts that give investors synthetic exposure to the performance of Bitcoin,” according to the report. Investors can utilize price return swap contracts which will enable them to engage in long or short trades. The bank has decided to charge a spread for each transaction. It is technically prepared to offer trading Bitcoin derivatives and will launch derivatives tied to digital assets once they estimate the ‘institutional client demand’.
The financial giant plans to build a cryptocurrency trading desk which supports different derivatives of cryptocurrencies. Morgan Stanley is currently undergoing an internal approval process. The results of the process and the short term trend of the institutional market of cryptocurrencies will affect the launch date of the trading platform. The bank has assigned Andrew Peel as head of digital asset markets.
Bitcoin has been losing in the market this year constantly affected by a bear trend and also negative news like the rejection of numerous Bitcoin ETFs by the SEC. Institutional investors are looking to offer derivatives tied to digital assets even amid a falling crypto market. Morgan Stanley’s cryptocurrency trading desk has brought back bullish sentiment to the market. The market cap is up more than $15 billion from yesterday’s crash. Bitcoin prices have recovered and are trading above its local support level at $6500. Most altcoins are changing hands in green and the overall cryptocurrency market is on a road to recovery.
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