Morgan Stanley and other institutions are circling around Bitcoin futures market

06 Nov, 2018
by Arthur Sillers
Morgan Stanley and other institutions are circling around Bitcoin futures market

Bitcoin futures are being looked too ever more closely by institutions who can bring a lot of capital to the market. While everyone is still waiting for Bakkt and the approval of the Bitcoin ETF to kick off institutional investment, its clear from institutional behavior that it is only a matter of time.

According to CoinDesk, Morgan Stanley’s report on Bitcoin and crypto were much more optimistic about crypto as an investment class than a similar report last year, and specifically highlighted futures trading as the most important piece of the puzzle for institutional investment players to develop an infrastructure for. Morgan Stanley has gone as far as reclassifying crypto as a‘institutional asset class,’ rather than a store of value, prefacing a big change in the way institutions look at digital currency.

Earlier this week, reports came out that Goldman-Sachs was quietly onboarding clients for a Bitcoin futures program already in development.

Rumors continue to trickle out that Bakkt’s futures trading platform will be approved by regulators soon, and the fact that so many institutions are becoming poised to follow up with their own crypto future trading platforms and products indicates that we likely will not only see regulated crypto futures approved in the US, but that this may be the point of ingress for a massive amount of capital from traditional financial institutions.

Crypto futures are looking increasingly attractive, as even the existing crypto futures market, which so far exists outside of a well regulated environment, is increasingly stable, with the Bitcoin futures market XBT showing record lows throughout October, according to Coin Telegraph.

While declining volatility in the Bitcoin sphere is tied to decreased volume, if Bitcoin futures products can become attractive to the more cautious investors investing through Morgan Stanley and Goldman-Sachs, there will certainly be an unprecedented spike in volume as institutional money floods in.

Read more: CME report shows Bitcoin futures volume up by 41%

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Read more about: Bitcoin (BTC)


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