America’s second-largest bank, Bank of America has announced that it is allowing its customers to invest in the Bitcoin Futures market.
According to a recent Coindesk report, many investors are preparing to open a Bitcoin futures trading account, with a few having already done so.
The US banking behemoth also announced the formation of a crypto research group tasked with investigating alternative crypto settlement solutions.
After maintaining a regressive position for a long time, the financial behemoth is warming up to the digital asset market. Bank of America had previously prohibited its consumers and financial advisors from investing in cryptocurrency.
According to another source acquainted with the situation, the bank will use CME Futures for its clients. CME is one of the most important Bitcoin derivative marketplaces for institutional investors, as well as the most important Bitcoin Futures market.
Many American banking behemoths have changed their minds about Bitcoin this bull market, as it has begun to attract affluent institutional clientele.
Many previous detractors, such as JP Morgan and Goldman Sachs, have begun to offer Bitcoin investment products in response to increased client demand.
Although JP Morgan does not believe Bitcoin has a bright future, the overwhelming demand for the top cryptocurrency pushed them to make it available to their clients.
Similarly, Goldman Sachs did not consider Bitcoin to be an asset class, but it was at the top of their Best performing assets list this year, and they have reopened their cryptocurrency desk in response to increased client demand.
Even though the price has dropped by half, demand for the leading cryptocurrency hasn’t dwindled. Institutional engagement in the crypto market could pave the door for more stringent rules.
Previously, institutional and wealthy clientele avoided the crypto market, believing it to be a bubble and a too volatile asset to invest in.
However, the current bull market has changed that, and institutions are now eager to include Bitcoin and cryptocurrency in their portfolios.