Morgan Stanley, a big multinational investment bank based in the United States, is reportedly prepared to offer bitcoin (BTC) swap trading to its client for the first time.
The development which is still rather unconfirmed officially, as the source chose to remain anonymous, sees Morgan Stanley offering the opportunity for trade in complex derivatives that would be based on the bitcoin (the biggest digital currency). This would see the investment bank also joining other firms on Wall Street which continue to find ways in which clients can interact with the cryptocurrency market.
In the same report by Alistair Marsh, Bloomberg Reporter, Frank Chaparro from the Business Insider conveyed plans that the heavyweight institution has to ‘offer to trade in complex derivatives,’ which is inevitably linked to Bitcoin as communicated earlier.
The unconfirmed source also explained that the multinational investment bank “will deal in contracts that give investors synthetic exposure to the performance of Bitcoin.” This only means the Morgan Stanley would be the following in the steps of fellow Wall street heavyweights Intercontinental Exchange and Goldman Sachs by imitating the existing/current plans of the banks as mentioned above.
Early this year, the investment bank conveyed that it would be joining Goldman Sachs in clearing Bitcoin futures contracts. The present potential move would be coming about six months after the initial announcement.
While many may believe the new development has long been coming, the timing, however, is a little unusual, and Morgan Stanley itself has not attested to or denied the claims. Not long this week, Morgan released warning statements regarding the erratic cryptocurrency market, and took a skeptical stand instead, as opposed to the news filtering from the source.
Expert and strategist, Mike Wilson also raised his concerns over the precarious crypto market in the coming year. He said:
“Our call is not for a simultaneous and large repricing across risk assets, but for a bear market that rolls through different assets and sectors at different times with the weakest links (Bitcoin, EM debt and equities, BTPs, funding spreads, base metals, and early cycle industries like home builders and airlines) being hit first/hardest.”