According to the source, Citi will begin trading CME bitcoin futures first, followed by bitcoin exchange-traded notes.
Citigroup (NYSE: C) is awaiting regulatory approval to begin trading bitcoin futures contracts on the Chicago Mercantile Exchange (CME), according to an anonymous source within the firm. According to reports, the bank is seeing an increase in client demand for cryptocurrency exposure as bitcoin continues its march near $50,000. Citi will join fellow megabank Goldman Sachs in providing bitcoin futures trading.
According to a second source knowledgeable with bitcoin derivatives markets, Citi is aggressively recruiting for a crypto-focused team in London. “The team is anticipated to obtain approval to trade CME bitcoin futures first, followed by bitcoin exchange-traded notes (ETNs).”
“Given the many questions around regulatory frameworks, supervisory expectations, and other factors, we are being very thoughtful about our approach,” a Citigroup spokesperson told CoinDesk via email. “We are presently considering products such as futures for some of our institutional clients, as these operate under strong regulatory frameworks.”
By signing up, you agree to receive emails from CoinDesk on product updates, events, and marketing, and that you have read and understood our terms and conditions and privacy statement. CME ascended to the top rank on the list of the largest bitcoin futures trading platforms in January, signaling sustained institutional interest.
A growing number of large banks are entering the cryptocurrency space, most frequently through cash-settled securities that monitor the price of cryptocurrencies. CoinDesk reported in July that Bank of America’s prime brokerage division began clearing and settling bitcoin exchange-traded products (ETPs) for European hedge funds.
Citigroup, one of the major banks in the United States, manages approximately $23.7 trillion in assets. Citi formed a business unit in June to provide cryptocurrency-related products through the bank’s wealth management division. Citi was reportedly considering bitcoin trading and custody in May 2021, according to a Financial Times article.
Citi’s U.K. brokerage platform began offering clients access to ETH (-4.49 percent ) ETNs during the last crypto bull run in 2017. However, as bitcoin’s price fell in 2018, demand for the products dwindled and the sale was abandoned.
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