Morgan Stanley, a Multinational Investment Bank in The United States has initiated plans to give its clients bitcoin trading options. The conglomerate intends to achieve this by creating bitcoin swap trading for its customers.
Morgan Stanley Swapping Trades
According to an article from a Bloomberg reporter, Alistair Marsh, “people familiar with the matter,” Business Insider’s Frank Chaparro announced the giant “plans to offer trading in complex derivatives” connected to Bitcoin.
Marsh’s sources further stated that Morgan Stanley “will deal in contracts that give investors synthetic exposure to the performance of Bitcoin,” which would amount into a replica of the plans from Wall Street’s Goldman Sachs and Intercontinental Exchange and others. The report also stated that; “Investors will be able to go long or short using the so-called price return swaps, and Morgan Stanley will charge a spread for each transaction,”
This announcement is one that is widely anticipated by several analysts since about last year where the company announced that it would be joining Goldman in clearing bitcoin features contractual agreement.
Morgan’s Cautious Approach
Morgan Stanley has been operating a kind of cautious approach towards cryptocurrencies, for instance; in a restrained statement about the short to mid-term future of the digital currency market this week, while with strategist Mike Wilson, making a warning as to a likely “rolling bear market” next year. He was quoted by The Street on September 12, saying;
“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.”
Double Standard as Regards Bitcoin
Despite the double standards approach by Giant institutions as regards bitcoin interaction, the subject matter remains a hot topic of several debates in the cryptocurrency sector.
It was reported the Goldman Sachs has since dropped the cryptocurrency trading project it proposes, and this piece has sent chills down the throat of several enthusiasts, investors and traders in the crypto industry. However, the bank executives were swift to nullify such reports and implore members of the public to regard it as “fake news.”
Also, this report about Morgan Stanley has not been confirmed by the bank, and its silent is becoming long enough to amount to consent owing to the fact that the story has been circulating among crypto figures which include Digital Currency Group CEO and founder Silbert.