Morgan Stanley Follows The Lead of Goldman Sachs in BTC Futures Clearing

post image

Things are becoming more exciting in the world of big investment. Maybe, the two bulls will butt the heads, as the prime worldwide financial services firm Morgan Stanley is getting on the bitcoin-based futures craze. Just like its adversary, multinational finance company Goldman Sachs, it is now clearing BTC futures contracts. And that is done for institutional depositors.

Moreover, the firm is going to hold an orderly appointment of executives at which they will think of the other ways of joining the world of digital currencies. This information was spread by Morgan Stanley chief financial placeman Jonathan Pruzan in a telephone conversation with Bloomberg journalists on January 18.

“If someone wants to do a trade on the futures and settle in cash, we’ll do that. I wouldn’t say it’s been a lot of activity, but it’s for core institutional clients who want to participate in a derivatives transaction,” explained Pruzan.

The financial officer also avoided answering the question concerning how much the firm demanded. However, Pruzan added that the unstable nature of BTC futures contracts was a reason why they set up margin levels.

By now, Morgan Stanley made a decision not to engage with crypto storage or market-making, even though the leadership has been considering this issue very meticulously.

Cboe’s & CME Rally

It has been one month since Cboe Global Markets Inc. and CME Group Inc. received a green light from the U.S. Commodity Futures Trading Commission to trade bitcoin-based futures. Cboe was the first to implement such futures and was met with considerable attention. Then it was the turn of the world’s most outstanding futures exchange CME Group to establish BTC derivatives products.

What is unique about CME’s futures is that they are based on five bitcoins, whereas Cboe’s contracts are only pegged to one BTC.

Also, in December 2017, Goldman Sachs required several customers hold over funds peer to the whole value of their BTC futures trade as a clause for clearing the transaction, holding back a bunch of clients.

First Expired BTC Futures Contract

By the way, on January 17, the first BTC-based futures contract was closed by Cboe at $10,900. Before the closure, the crypto market survived a comparatively rough week, during which bitcoin’s price lowered to $9,402. However, when the futures closed two days before, bitcoin’s rate went down by 36%, according to the Cointelegraph.

So let’s keep an eye on the rivalry, as the show will go on.

Quick Look At All Crypto News And Events For November 2020
Were you too engrossed in trading left and right that you’d completely spaced on getting your monthly update of the latest events in the crypto world? Well,...
Bitcoin Era Success Story: Teen Hits Jackpot With Crypto Trading
17-Year Old Hits The Jackpot With Cryptocurrency Trading Venture The news media has been swept up in a tornado with the latest news of a 17-year-old boy...
Keep Up With October Crypto Events Checking Out This Quick Roundup
Top Crypto Market News Of October You Should Catch Up With Do you think the world is turning more crypto-crazed day by day? There’s no limit to your investments...
A Collection Of Fresh Crypto News For Those Who Missed Out
The Major Roundup On The Latest Crypto News In The World The last month has been full of events and brought even more pressure on local business pretty...
What Everyone Should Know About Tokenization
Blockchain tokenization is a means of digital representation of a right and can be done with the help of a ledger. This can be a right to asset ownership...
What To Expect From A Cryptocurrency Market In 2020
Crypto market has always been a good target for speculation, shady schemes, and "bad guys". It's also very controversial, especially for financial markets...
Ethereum Foundation Confirms Upcoming ‘Istanbul’ Upgrade
On November 7th, Péter Szilágyi announced the date of the foundations impending upgrade, known as ‘Istanbul’. This upgrade will be the eighth hard fork...
Bitcoin’s Volatility? In 2017 BTC Was More Stable Than In Its Early Days
Despite some 30% crashes in 2017, bitcoin managed to increase by total 1,400% last year, conquering the world’s financial stage. Banks are becoming more...
Stablecoin - Everything You Need to Know
What Is A Stablecoin? You must have heard of cryptocurrency which has been the recent talk of the town. Well, stablecoins are a form of cryptocurrency....
Influence of Recent Cryptocurrency Boom: Does It Still Hurt?
Crypto Exchange Gate.io Agrees With Reports Showing 51% Attack On Ethereum Classic Bitcoin is a decentralized digital currency (also known as cryptocurrency)....
What is a Security Token?
Security tokens became very popular, but do you really know what is STO?STO is Security Token Offering, which is identical to an ICO. In this, there are...
Canada Reports Blockchain To Be Amongst Its Highest Paying Industries
A report recently published by the Canadian Digital Chamber of Commerce proves that the money involved in the blockchain industry of the nation is at the...
Cryptocurrency Exchange Security Levels
The growing interest in cryptocurrencies has led to the emergence of a wide selection of both digital money and the sites where you can exchange one cryptocurrency...
Belarusbank Considers Setting Up Crypto Exchange
Last year March Belarus introduced a decree by which it legalized cryptos and some activities related to them. This made Belarus a frontrunner in the race...
Gold Pulls Bitcoin Investors From BTC, Says Van Eck Associates CEO
In 2017-2018 bitcoin bit gold as bait for investors. However, the situation is expected to change in 2019 as investors already hope more for the gold than...