Fresh reporting on what amounts to one of the most eagerly anticipated events in bitcoin history – pending futures markets and contracts – suggests that some of the larger banks are less than thrilled at the prospect of offering such services to customers.
Futures Closed at Bank of America, Royal Bank of Canada, and Citi
For whales to get in on the bitcoin boom they’re going to need licensed and registered banks to approach markets created at the likes of Chicago Merc (CME), Chicago Board (Cboe), Nasdaq, and Cantor Fitzgerald in the coming days, weeks, and months. Gatekeepers at Bank of America Merrill Lynch (BAML), Citigroup Inc. (Citi), and Royal Bank of Canada (RBC) say they’re refusing, according to reports.
This could signal some coming hiccups on the road to bitcoin mainstreaming.
With bitcoin’s wild swings, crashes, and then swings back upward again, such volatility places broker liability in keen focus. Traditional markets require financial priests to guide laity to the promised land – brokers – and yet that broker can be on the hook for bad bets, which with bitcoin could be oodles of cash.
The easiest answer for big banks is the Boog Powell approach…