Nomura aims to avail its customers of the opportunity of trading Bitcoin futures in the volatile market.
Nomura Holdings, a Japanese brokerage giant has begun offering Bitcoin derivatives to its institutional clients. The decision comes at a difficult time for Bitcoin (BTC), which is currently trading below $30,000.
The company will offer non-deliverable Bitcoin forwards and non-deliverable options settled in cash. As a result, its customers can begin trading Bitcoin futures and options in the market.
According to Bloomberg, Nomura executed the first trade on CME Group Inc.’s platform earlier this week. It has also collaborated with market leader Cumberland DRW LLC. Tim Albers, Asia ex-Japan head of forex structuring, stated:
“There has been significant volatility recently. Once the dust settles, valuations will become more attractive for institutional clients. We’re pretty excited to get this off the ground” as the launch “marks the start of our journey into the space” for the global markets business.
Earlier this year, Japanese banking giant Nomura announced its intention to enter the crypto market. Along the same lines, “tapping resources within its Singapore-based foreign exchange” for global crypto expansion.
However, the decision of Nomura to enter global markets comes at a critical juncture. Over the last 45 days, the cryptocurrency market has eroded more than $300 billion in investor wealth. As a result, policymakers around the world are likely to increase their scrutiny of cryptocurrency.
However, global macroeconomic conditions are unfavorable for Bitcoin investors. To combat rising inflation, the Federal Reserve is expected to raise interest rates aggressively this year. At the same time, if the United States reports a second consecutive quarter of negative GDP, the chances of a recession increase.
“We expect the sector to mature over time, to become more regulated, which makes it more attractive for institutional investors,” Albers said. “As a result, Bitcoin volatility should reduce over time.”
