Citi will reportedly begin trading Bitcoin futures, following Goldman Sachs’ lead as customer demand for crypto spikes rises | Currency News | Financial and business news

  • Citigroup is actively recruiting traders to start working with Bitcoin futures, according to a new CoinDesk report.
  • Citing two sources, including one within the bank, the report said Citi is interested in trading Bitcoin futures contracts on the Chicago Mercantile Exchange and is pending regulatory approval.
  • In May, Goldman Sachs began offering certain customers access to Bitcoin through a derivative called non-deliverable forwards.
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Citigroup is actively recruiting traders to start working with Bitcoin futures, according to a new CoinDesk report.

Quoting two sources, including one within the bank, the report says that Citi is interested in trading Bitcoin futures contracts on the Chicago Mercantile Exchange.

A source familiar with the situation told CoinDesk that Citi could begin trading in Bitcoin futures before moving on to other products like exchange-traded Bitcoin notes. According to CoinDesk, the bank is currently awaiting major government approvals for a crypto trading desk based in London.

However, Citi denied parts of the report, saying claims that they are starting a crypto-focused team in London or investigating ETNs were inaccurate.

“We are currently considering products such as futures for some of our institutional clients as they operate under strict regulatory frameworks,” a Citi spokesman said in a statement to Insider. “Given the many questions about regulatory frameworks, supervisory expectations and other factors, we are very deliberate in our approach.”

In May, Goldman Sachs began offering certain customers access to Bitcoin through a derivative called non-deliverable forwards, according to Bloomberg Law. NDFs allow holders to bet on the short-term price direction of Bitcoin while paying in cash instead of Bitcoin. Goldman hedges the bet by buying or selling Bitcoin futures on the CME.

“The company is unable to trade Bitcoin or other cryptocurrencies (including Ethereum) on a physical basis,” Goldman’s head of crypto trading said in a memo received from CNBC.

Citi had previously offered its customers access to Ethereum ETNs, but withdrew after the price crash of the “crypto winter” 2017.

Continue reading: Bitcoin and Ethereum prepare to hit all-time highs as cryptocurrencies “get too big to be ignored,” says a 20-year-old market veteran. Here are 5 high upside coins he’s watching closely.

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