Another large investment bank wants to get involved with bitcoin.
In news out today it was revealed that Morgan Stanley is stepping into the bitcoin trading arena.
Though they won't be trading bitcoin directly, they will be offering products that are based around bitcoin's price, futures products to be precise.
Not all that unsimilar to bitcoin based futures that are cash settled.
The news release can be seen here:
What this means?
By itself, it probably doesn't mean that much for the price of bitcoin.
Clients will now be able to trade another derivative based on the price of bitcoin, which by itself shouldn't move prices much.
Though there is the possibility that traders purchase the swap then try to move the spot markets to make their swap more valuable.
Something that has likely been happening in the futures markets currently.
However, the bigger impact on prices is what this news represents.
Just a few weeks ago the crypto markets got blindsided by news that Goldman was pulling out of their plans to launch a crypto trading desk.
Though that news was later refuted, it didn't undo the tremendous damage that was done to the crypto markets.
Bitcoin sold off roughly $1,000 shortly after the original news broke.
However, just a few short weeks later we have another major Wall Street heavyweight willing to attach their name to the controversial digital currency.
Something that only gives it credibility among investors.
Whether Goldman pulls out or not isn't nearly as big of a deal because we have another big name willing to step in and take their place, which overall is very bullish for the future of bitcoin and possibly bitcoin prices.
A small step in the right direction.
As more and more bitcoin products come to market, we will get closer and closer to getting ones that are actually physically backed, which is what crypto investors are really hoping for.
Time and time again, physically backed ETFs have been chosen over their non-physically backed rivals by investors in many different asset classes.
Plus, as more products are released by big Wall Street firms, I can only imagine that will help the SEC feel more comfortable approving a bitcoin ETF.
It will give them more data to use when deciding how a bitcoin ETF might work when it is live and what issues it might face.
Overall, very bullish news for bitcoin and crypto.
Stay informed my friends.
Image Source:
https://blockmanity.com/news/morgan-stanley-offer-bitcoin-swap-trading-clients/
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