Morgan Stanley is preparing to launch a bitcoin futures trading desk, making it the first major Wall Street firm to do so. Morgan Stanley Research released its annual report on the future of financial services today, which contains a surprising inclusion of a market analysis on Bitcoin.
also, the banking institution has allegedly been in negotiations to buy a major stake in Bithumb, Korea’s largest cryptocurrency exchange, following the announcement of the investment banking giant’s first move to offer its customers exposure to Bitcoin.
In its annual report to investors, Morgan Stanley writes that Bitcoin is now “being monetized through futures contracts traded on established exchanges.” They further claim that Bitcoin futures will be “the first step toward Bitcoin becoming a mainstream asset.”
The term “digital currency” was used quite a bit by the experts, but it was not described as a currency but as an asset. More and more, it seems to me that Bitcoin is going to have many more uses in the future. Apparently banks are thinking about investing in blockchain technology, which underpins cryptocurrencies because it is starting to be seen as a lucrative investment.
This type of trading activity will surely spark interest from investors, and some have already been positioning for the launch of the bitcoin futures trading desk at Morgan Stanley. the Financial Times points out that, as the cryptocurrency market grows, major financial institutions like JPMorgan, which have been hoarding large amounts of bitcoin cash, are feeling pressure to cash in. Some companies have been considering offers of bitcoin cash at low prices, and these offers are coming from established financial institutions.
At least one financial institution is starting to get in on the Bitcoin game with the Morgan Stanley Research team currently examining the cryptocurrency, and is in the process of formulating a “proprietary cryptocurrency strategy.”
Other reports say that at least six large banks are “stepping into the arena” when it comes to bitcoin derivatives. These include JP Morgan, Bank of America, Citigroup, Santander, UBS, and Goldman Sachs. As a result, banks are treating it with cautious optimism, given the question marks surrounding the security and future of bitcoin.