Even with the reign of the bear market, it seems more and more financial institutions are seriously looking to join the bitcoin train. On May 24, 2018, Frankfurt-based Deutsche Borse AG has hinted it’s weighing the possibility of offering clients bitcoin and other crypto-related products.
Fighting the Bitcoin Bug
According to Bloomberg, the highly-reputed stock exchange has noted a more liberal approach towards bitcoin and other blockchain-based virtual currencies. Present at an industry event in London by the Association for Financial Markets in Europe (AFME), the company’s head of clients, products, and core markets, Jeffrey Tessler, noted that the firm is carefully studying bitcoin and the underlying technology:
“Before we move forward with anything like Bitcoin we want to make sure we understand the underlying transaction which isn’t the easiest thing to do. We are deep at work with it.”
The former Executive Vice president of the Bank of New York also hinted that the super volatile nature of the world’s flagship cryptocurrency, as well as the regulatory uncertainties surrounding the nascent digital assets industry, makes it crucial to study the ecosystem extensively before jumping in.
“Before moving forward with anything like Bitcoin, we want to understand the volatility and make sure clients are in line and make sure regulators are in line.”
It’s Only a Matter of Time
While Tessler and his firm are waiting for the storm to settle before diving into the crypto oceans, the CME and CBOE are still doing brisk business with bitcoin. May 2018 has also seen the launch of the ether futures contracts by Crypto Facilities, a London-based digital assets company entirely regulated by the Financial Conduct Authority (FCA).
Interestingly, however, Tessler is not alone in his decision. Back in April 2018, the CEO of Nasdaq, Adena Friedman told CNBC that they would consider launching a cryptocurrency exchange when bitcoin is done scaling all the regulatory hurdles, and the markets get more mature.
“Certainly Nasdaq would consider becoming a crypto exchange over time. If we do look at it and say it’s time, people are ready for a more regulated market, for something that provides a fair experience for investors.”
Bitcoin Futures Contracts Responsible for the Price Slump
May is almost gone, and the bear market is still upon us, threatening fire and brimstone. Of a truth, the regulatory pressures that the authorities have subjected the crypto ecosystem to since September 2017 has taken its toll on the markets.
However, recent research by the Federal Reserve Bank of San Francisco points to the fact that the CME and CBOE bitcoin futures contracts are responsible for the unending bitcoin bloodbath. An excerpt from the document reads:
“Similarly, the advent of blockchain introduced a new financial instrument, bitcoin, which optimistic investors bid up, until the launch of bitcoin futures allowed pessimists to enter the market, which contributed to the reversal of the bitcoin price dynamics.”
At press time the price of bitcoin is just above the $7,500 price region.