Morgan Stanley is jumping on the bitcoin futures bandwagon
- Morgan Stanley is clearing bitcoin futures trades for clients, according to Bloomberg News.
- It joins rival Goldman Sachs and a number of large brokerages.
Morgan Stanley has followed the lead of its rival Goldman Sachs and is clearing bitcoin futures trades for clients.
Jonathan Pruzan, the bank's chief financial officer, said the firm has been clearing bitcoin futures trades made on Cboe Global Markets and CME Group, in an interview with Bloomberg News.
The exchange groups launched bitcoin futures in December, but much of Wall Street has been taking a wait and see approach on the product which is tied to a cryptocurrency known for its spine-tingling volatility. Goldman Sachs is the only other major Wall Street bank known to be clearing bitcoin futures trades, according to Bloomberg.
"If someone wants to do a trade on the futures and settle in cash, we'll do that," Pruzan told Bloomberg. "I wouldn't say it's been a lot of activity, but it's for core institutional clients who want to participate in a derivatives transaction."
Large brokerages such as TD Ameritrade, E*Trade, and Interactive Brokers are allowing some clients to trade futures through their platforms.
The news is on the heels of a major sell-off in the cryptocurrency markets. During Wednesday's trading session, the total value of the cryptocurrency market fell below $420 billion, almost half of its worth on January 7.
The markets have since come storming back and at last check the market capitalization for all cryptocurrencies stood at $595 billion, according to CoinMarketCap data.