Crypto Market Rallies After Morgan Stanley Announces Bitcoin Derivative Product

via Morgan Stanley

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.

The cryptocurrency market has rallied as a result of the news, with the AltDex 100 Index (ALT100), a benchmark index for large-cap cryptocurrencies and tokens, rallying 4.4% over the past 24 hours.

AltDex 100 Index
More: Morgan Stanley Plans to Offer Bitcoin Swap Trading for Clients
Similar: Morgan Stanley Is Racing Wall Street to Be the First Into Crypto

Leave a Reply

Your email address will not be published.

Related Posts

5 Altcoins to Add to Your Portfolio in July

Recently,¬†Charlie Lee, the founder of Litecoin, went¬†on record stating that he believes investors should own at least one¬†bitcoin¬†before…