Morgan Stanley Joins Companies Already Trading Bitcoin Futures

Ned Piplovic

Morgan Stanley

Morgan Stanley (NYSE:MS) is just the second major financial institution to get involved with bitcoin futures. In an interview with Bloomberg News, Jonathan Pruzan, Morgan Stanley’s chief financial officer, said that his firm has joined Goldman Sachs (NYSE:GS) and has started clearing bitcoin futures trades for its customers.

Mr. Pruzan shared with Bloomberg that Morgan Stanley can arrange for interested clients to “do a trade on the futures and settle in cash.” But he added, “I wouldn’t say it’s been a lot of activity, but it’s for core institutional clients who want to participate in a derivatives transaction.”

While few exchange groups, like the CME Group Inc. (NASDAQ: CME) and the Cboe Global Markets, Inc. (NASDAQ: CBOE), have taken the early plunge into trading bitcoin futures, most major financial institutions have stayed on the sidelines and are observing before they decide to join.

For instance, despite significant investments in blockchain technology by its Bank of America Corporation’s (NYSE:BAC) parent company, Merrill Lynch does not assist its customers with bitcoin investments in any way. Few brokerages, such as Interactive Brokers, TD Ameritrade and E*Trade, allow cryptocurrency futures trading to a limited group of their core customers.

Because of high volatility of the cryptocurrencies markets – bitcoin lost more than half of its value in less than a month after its nearly $20,000 peak in mid-December 2017. Plus, due to uncertainty about what role cryptocurrencies will play in future financial markets, even the companies that are getting involved in cryptocurrencies trading are limiting their participation.

Since its drop below 50% of its peak value, bitcoin has risen and has been trading at almost $11,600 on Jan. 18 – 26% above its $9,205 low that it reached near the end of the trading day on Jan. 17.

Exclusive  Booking 126% Profits in “China's Twitter” in Just Seven Trading Days!

 


Ned Piplovic is the assistant editor of website content at Eagle Financial Publications. He graduated from Columbia University with a Bachelor’s degree in Economics and Philosophy. Prior to joining Eagle, Ned spent 15 years in corporate operations and financial management. Ned writes for www.DividendInvestor.com and www.StockInvestor.com.


 

Like This Article?
Now Get Mark's FREE Special Report:
3 Dividend Plays with Sky-High Returns

This newly-released report by a top-20 living economist details three investments that are your best bets for income and appreciation for the rest of the year and beyond.

Get Access to the Report, 100% FREE


img
previous article

Economist Dr. Mark Skousen analyzes the possible impact of a government shutdown on the horizon.

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

LEARN MORE HERE

Mike Turner

Mike Turner’s financial, mathematical, computer science and engineering background serves as the foundation for his disciplined, rules-based approach to trading. Mike’s three services include:

Product Details

LEARN MORE HERE

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:

Product Details

LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

LEARN MORE HERE