Bitcoin has proven itself as a great digital asset thanks to the tremendous increase in its price. After a great deal of reluctance, Wall Street and Chicago financial pros have also joined the Bitcoin bandwagon, looking to get a share of what this digital currency offers.
Earlier in the year, we saw Wall Street pros such as Josh Brown and Bill Miller testing the Bitcoin waters, stating that if the digital currency survived the August split, then it would likely gain traction among financial industry professionals.
Many industry experts have been skeptical about Bitcoin and cryptocurrencies, with many claiming that it cannot sustain the high prices and that it’s just a bubble waiting to pop. The true believers of this cryptocurrency have been pressing on, investing their hard-earned paychecks in the hope of future profits as the prices continues to hit record highs.
Professionals and Industry Experts Now Embracing Bitcoin
With the mainstream industry covering more stories on Bitcoin, more and more people are gaining interest on what this digital currency has to offer. This has made the demand to surge, with exchanges such as Coinbase claiming to have registered more than 10,000 new accounts in just a few days. Just recently, the price of Bitcoin smashed past the $10,000 mark, and a few days later, broke the $18,000 barrier before falling back to just over $16,000.
Noting this incredible surge in prices, even the financial professionals have decided to join in, with many of them purchasing as many bitcoins as their exchanges can handle. Many are speculating that the prices could go even higher over the coming days, with some saying that the price could hit the $28,000 mark in 2018. The entrance of Wall Street and Chicago professionals is seen to mean one thing – it’s a buying signal and not a selling signal!
Wall St. / Chicago pros are buying as many #Bitcoins as exchanges can handle. Their net purchases are disrupting exchanges and price discovery. This is not a sell singal. In fact it’s a buy signal. pic.twitter.com/YMumYx6Xlf
— Max Keiser (@maxkeiser) December 7, 2017
But Wall Street Banks Are Not Ready yet for Bitcoin Futures Market
The first Bitcoin futures contract will go live on Sunday, December 10th, launched by Cboe, and a week later by CME. This is good news to those looking to invest in Bitcoin, but banks of Wall Street are not ready yet to hit the play button and allow clients to access the bitcoin futures market.
Royal Bank of Canada, Citigroup Inc., Bank of America, Merril Lynch, and JPMorgan Chase & Co. are informing their clients that it’s not likely they will allow them to have access to the Bitcoin futures, restricting them from placing their bets on the market. The banks say that the quick introduction of Bitcoin futures did not allow for a proper time of public input and transparency. The banks also believe that using a self-certification method for “these novel products does not align with the potential risks that underlie their trading and should be reviewed.”
However, some financial institutions will back both the CME and Cboe offerings. Bob Fitzsimmons, head of Wedbush Futures, says:
We could sit for hours and have a philosophical debate about bitcoin and its legitimacy and uses, but our job is to service our customers.
In the end, Bitcoin futures contracts will be launched, and plenty of investment professionals are buying up cryptocurrency in hopes of making a profit. The reality is that cryptocurrency does not need banks, but it sure seems that quite a few bankers are wanting a piece of digital currency.
What do you think about more financial experts embracing Bitcoin? Do you think the Bitcoin futures market will suck in even the Wall Street pros? Let’s hear your thoughts in the comments below.
Images courtesy of Twitter/@maxkeiser, Pixabay, and Bitcoinist archives.