Bank of America approves bitcoin futures trading for some customers

Bank of America approves bitcoin futures trading for some customers
Bank of America, the second-largest U.S. bank, has approved bitcoin futures trading for some of its clients, according to two people familiar with the matter who asked not to be named because the information is private.
Like most institutions, the bank has been conservative in its approach to cryptocurrencies, but it is now allowing some clients to enter the market because of the large margin required to trade futures, one of the sources said.
Another source said some clients were preparing to trade cash-settled bitcoin futures, and one or two may already be live.
Some investment banks are reportedly allowing clients to invest in cryptocurrency products. In March, Goldman Sachs confirmed plans to relaunch its cryptocurrency trading platform after a three-year hiatus, and in May, the investment bank began buying and selling Bitcoin futures in block trades through the Chicago Mercantile Exchange (CME) Group, using Cumberland DRW as its trading partner.
Bank of America Corp. will also use CME futures, one of the sources said.
Bank of America declined to comment.
Earlier this month, news broke that the Charlotte, North Carolina-based bank had established a team dedicated to cryptocurrencies and related technologies. In 2018, Bank of America blocked financial advisors and clients from trading in Bitcoin-related investments, but that policy has now changed.
The Chicago Mercantile Exchange launched Bitcoin futures in 2017. In May of this year, the Chicago Mercantile Exchange launched the "Micro Bitcoin" futures product in an attempt to profit from the rise in Bitcoin prices.
Earlier this year, the Chicago Mercantile Exchange (CME) took the top spot on the list of the world’s largest Bitcoin futures trading platforms, indicating that institutional participation continues to rise.
According to Arcane Research, total open interest in the bitcoin futures market is $11.3 billion, down 59% from the peak of $27.3 billion on April 13.

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