Citi will reportedly start trading bitcoin futures, following Goldman Sachs’s lead as client demand for crypto spikes | Currency News | Financial and Business News

  • Citigroup is actively recruiting merchants to start working with bitcoin futures, in response to a brand new CoinDesk report.
  • The report, citing two sources together with one throughout the financial institution, says that Citi is angling to commerce bitcoin futures contracts on the Chicago Mercantile Exchange and is awaiting regulatory approval.
  • In May, Goldman Sachs started providing sure purchasers entry to a bitcoin by way of a by-product referred to as non-deliverable forwards.
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Citigroup is actively recruiting merchants to start working with bitcoin futures, in response to a brand new CoinDesk report.

The report, citing two sources together with one throughout the financial institution, says that Citi is angling to commerce bitcoin futures contracts on the Chicago Mercantile Exchange.

A supply conversant in the state of affairs informed CoinDesk that Citi’s trading operation might start with bitcoin futures earlier than transferring on to different merchandise like bitcoin exchange-traded notes. The financial institution is at the moment awaiting key regulatory approvals for a crypto trading desk primarily based in London, in response to CoinDesk.

But Citi denied elements of the report, saying claims that it was beginning a crypto-focused group in London or trying into ETNs had been inaccurate.

“We are presently contemplating merchandise such as futures for a few of our institutional purchasers, as these function below sturdy regulatory frameworks,” a Citi spokesperson informed Insider in an announcement. “Given the numerous questions round regulatory frameworks, supervisory expectations, and different elements, we’re being very considerate about our method.”

In May, Goldman Sachs started providing sure purchasers entry to a bitcoin by way of a by-product referred to as non-deliverable forwards, in response to Bloomberg Law. NDFs let holders wager on bitcoin’s short-term worth course whereas getting paid in money, reasonably than bitcoin. Goldman hedges the wager by shopping for or promoting bitcoin futures on the CME.

“The agency is just not able to commerce bitcoin, or any cryptocurrency (together with ethereum) on a bodily foundation,” Goldman’s crypto trading head mentioned in a memo obtained by CNBC.

Citi had beforehand provided purchasers entry to ethereum ETNs however backed away after the 2017 “crypto winter” worth crash.

Read extra: Bitcoin and ethereum are gearing up to knock out all-time highs as cryptocurrencies get ‘too big to be ignored,’ a 20-year market veteran says. Here are 5 high-upside coins he’s watching closely.

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