By Hannah Perez
exchange-traded notes (ETNs), according to reports.
, one of the world’s largest financial services firms, is preparing to offer crypto-derivatives market investment instruments.
As reported by CoinDesk on Tuesday, the New York-based banking giant is waiting for approval from regulators to start trading Bitcoin futures from the U.S. derivatives market, Chicago Mercantile Exchange (CME Group
). A source at the bank, who preferred to remain anonymous, revealed the information to the aforementioned media outlet.
According to the report, the move would come in the wake of growing demand from the bank’s clients who want to gain exposure to digital currencies. The news also comes as Bitcoin
touches the USD $50,000 mark again amid an uptrend in the crypto market.
Citibank plans to trade BTC funds and futures
to its clients.
Goldman Sachs began trading BTC futures in June following a partnership with Galaxy Digital, the investment firm specializing in cryptocurrencies and run by billionaire Michael Novogratz. As DiarioBitcoin reported at the time, Goldman’ s Bitcoin financial instruments trading is also conducted through the CME Group
Citigroup is still awaiting approval from U.S. regulators to launch the project. The report did not provide details on the current status of the regulators’ review or advance a timeline.
Although, on the other hand, the report revealed that futures trading is not the bank’s only effort to foray into the digital currencies space. According to another person close to the bank, Citi is currently actively recruiting staff to join a cryptocurrency-focused team in London.
The team is likely to get approval to start trading CME bitcoin futures first and then bitcoin exchange-traded notes [ETNs].
Another one venturing into the crypto space.
A Citigroup spokesperson also confirmed via email to the aforementioned media outlet about the bank’s projects related to the launch of new financial instruments linked to Bitcoin.
“Given the many questions about regulatory frameworks, oversight expectations and other factors, we are being very thoughtful about our approach .We are currently considering products such as futuresfor some of our institutional clients as they operate under robust regulatory frameworks.”
Citigroup’ s announcement comes as an increasing number of large U.S. banks are venturing into cryptocurrencies. Institutions often choose to offer cash-settled products that track the price of. Bitcoincryptocurrencies, such as exchange-traded products (ETPs) or ETNs.
A recent report made it known that Bank of America’ s prime brokerage unit started clearing and settling cryptocurrency ETPs for hedge funds in Europe. Goldman Sachs also began offering cryptocurrency ETPs to its European clients this year.
With more than $23.7 trillion in assets under management, Citigroup has made other moves into the crypto space. In June 2021, a business unit of the bank began offering cryptocurrency-related products to wealthy clients. A month earlier, a report from Financial Times Citi were weighing the possibility of cryptocurrency trading and custody.
Sources: CoinDesk, archive
Version of Hannah Estefania Perez / DiarioBitcoin
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