They say institutional interest in crypto has slowed down. With the way things are going, the situation seems quite different. One after another, giants like ICE, Nasdaq, Merrill Lynch, Morgan Stanley, Citigroup and many more keep on entering the crypto market that means big money will come pouring into the market as well.
Bakkt by Nasdaq’s parent company ICE
The biggest news of the year has been Nasdaq’s parent company ICE announcing the launch of Bakkt that will go live in early November, this year. With Bitcoin as the underlying asset, contracts will be released without any margin.
According to the experts, it is even a bigger news than the Bitcoin ETF. Bitcoin Bull, Brian Kelly has insisted, “Buckle in because this is the biggest #bitcoin news of the year.” There are many things planned out for this platform that might also involve custody solution and then branching into customer and merchant applications. This just might forge a path for Bitcoin ETFs’ approval as well.
Morgan Stanley latest to jump on the Bitcoin train
Though it is yet to be confirmed by the institution, Morgan Stanley is planning to offer trading in complex derivatives that will be tied to the Bitcoin. Investors will be provided synthetic exposure to the Bitcoin price movements. This further means, investors will be able to go long or short on the leading crypto.
Morgan Stanley will be charging a spread for each of the transaction. Having already prepared to offer Bitcoin swap trading, this service will be apparently launched once institutional demand is proven which will involve an internal approval process.
Merrill Lynch doesn’t want to be left out
Reportedly, Merrill Lynch, a division of Bank of America is also set to develop a Bitcoin product. With the giants from the Wall Street has taken the Bitcoin route, Merrill Lynch doesn’t want to be the only one which isn’t getting a taste of this market.
Citigroup to offer digital asset receipt (DAR) product
After Northern Trust, Citigroup has moved into custody solutions for crypto. New York-based bank will launch a product Digital Asset Receipt (DAR), through which institutional investors will be allowed to invest in cryptos in a regulated and insured manner.
“The bank will alert the Depository Trust & Clearing Corp, a Wall Street middleman that provides clearing and settlement services, once it’s issued the receipt”,
it has been reported.
Similar to ETFs, the investors won’t be actually owning the cryptocurrency as it will be rather represented by DAR.
Goldman Sachs diving deeper
Goldman Sachs is very much on the crypto track and is further planning to offer crypto custody solutions. Though it is not clear yet when the product will go live, the plans could also move to services like prime-broker services.
Moreover, Fidelity, Nasdaq, and JP Morgan are also jumping into the Bitcoin fray. With these big Wall Street names riding the Bitcoin wave, as put by Alistair Milne “Institutional money took the hedge fund industry from ~$300billion to ~$6trillion,” Bitcoin market can be so expected to skyrocket as well.
Having a background in writing, I worked on a wide array of industry topics and have recently entered the world of Blockchain and Cryptocurrency.