Bank of America’s Merrill Lynch to Launch Bitcoin Trading Product
Following Goldman Sachs and Morgan Stanley rush into the market, Bank of America doesn’t want to be left out to loose on important clients and future market share.
Bank of America and Merrill Lynch has joined the beeline to offer crypto-based products to its clients. As the company is set to produce a Bitcoin product that will be tradeable for clients and based on the futures markets in aggregate.
The article features limited information about how the bitcoin trading product will work. However it’s a huge news for the crypto space, and it’s yet another sign of major Wall Street institutions jumping into bitcoin in a major way.
The product that Bank of America is looking to develop seems to be a Bitcoin derivative connected to a Non-Deliverable Forward. A complex product only the best on the Street can understand.
In traditional financial markets, NDFs are an outright forward or futures contract where counterparties settle the difference between the contracted NDF price or rate and the prevailing spot price or rate on an agreed notional amount. NDFs are used in various markets – including forex markets and commodities.
Earlier this week it was revealed that Citigroup was chasing Goldman Sachs down this same road and preparing a like-minded Bitcoin derivative
Goldman Sachs has been reportedly developing its bitcoin derivative product all year, and that news has been reported across the crypto industry all summer.
Get Bitzamp Latest Update By Downloading our Mobile App: Bitzamp – Cryptocurrency News – Apps on Google Play