The New York-based financial giant is now getting ready to start offering CME Bitcoin futures and then Bitcoin exchange-traded notes (ETNs.)
Citigroup, one of the most relevant financial services companies worldwide, is getting ready to offer investment instruments from the crypto-derivatives market.
As CoinDesk reported on Tuesday, the New York-based banking giant is now waiting for regulatory approval to begin trading Bitcoin futures on the US derivatives market, Chicago Mercantile Exchange (CME Group). An anonymous source from the bank brought the information to the media.
According to the report, the initiative would arrive because of increasing demand from the bank’s clients who want to acquire more exposure to digital currencies. The news also comes as Bitcoin hits the $ 50,000 mark again amid an uptrend in the crypto market.
Citibank Intends to Trade BTC Funds and Futures
Citigroup would join banking giant Goldman Sachs in offering future clients of Bitcoin (BTC).
Goldman Sachs started trading BTC futures in June, right after a partnership with Galaxy Digital, the investment firm specializing in cryptocurrencies led by billionaire Michael Novogratz.
The operations of Goldman’s Bitcoin financial instruments are also at work through the CME Group market. Citigroup is still awaiting approval from US regulators to launch the project. The report did not provide details on the current status of the regulator’s review or advance an estimated launch schedule.
Although, on the other hand, the report revealed that futures trading is not the bank’s only effort to explore the space of digital currencies. According to another spokesperson close to the bank, Citi would be hiring staff to join a crypto-focused team based in London.
The unknown source told CoinDesk that the institution is also waiting to bring Bitcoin exchange-traded notes, or ETNs, once the futures receive their approval.
One More Journey into the Crypto World
A Citigroup spokesperson also assured by email to the media about the bank’s projects related to the release of new financial instruments linked to Bitcoin.
Regarding the many questions about regulatory frameworks, supervisory expectations, and other special features, the entity is very thoughtful about its steps. They said they are currently considering products as futures for some institutional clients, as they operate under strict regulatory frameworks.
Citigroup’s release arrives as an increasing number of large US banks are exploring cryptocurrencies. Institutions often choose to offer cash-settled products that track the price of Bitcoin, such as exchange-traded products (ETPs) or ETNs.
A brief report revealed that Bank of America’s first brokerage unit started the clearing and settlement of cryptocurrency ETPs for hedge funds in the European continent. Goldman Sachs also started offering cryptocurrency ETPs to its European clients this year.
With more than $ 23.7 trillion in assets under management, Citigroup has made other moves into the crypto space. In June 2021, a business unit of the bank began offering cryptocurrency-related products to wealthy clients. A month earlier, a report from the Financial Times highlighted that Citi was weighing cryptocurrency trading and custody.
By: Jenson Nuñez
