Crypto Market Rallies After Morgan Stanley Announces Bitcoin Derivative Product
Multinational investment bank Morgan Stanley (MS) is preparing to offer Bitcoin (BTC) swap trading to clients, enabling investors to gain exposure to the world’s largest digital currency without needing to own it.
According to sources familiar with the matter, participating traders may choose to go either long or short through the new price return swaps. The trading will initiate following an internal approval process and confirmed interest by clients. Morgan Stanley is currently set to charge a spread for each transaction.
The news comes after an initial report that Morgan Stanley was considering a possible Bitcoin product back in April. The bank’s foray into digital currency follows Goldman Sachs’ clarification that the bank is still considering launching a Bitcoin trading desk.
The prolonged interest has emerged following a significant slide in the value of Bitcoin, which began late last year. Due to the fact that the currency lost more than half its value in a matter of months, banks in the United States have been cautiously approaching digital assets as a whole by opting instead for the relative safety of regulated futures markets.